Smith's business receives an invoice from a supplier for 1000 with payment due within 30 days. The terms of payment allow for a discount of 2.5% if the bill is paid within 7 days. Smith does not have the cash on hand 7 days later, but decides to bor- row the 975 to take advantage of the discount. What is the larg- est simple interest rate, as an annual rate, that Smith would be willing to pay on the loan? 1.1.8