Terms of Sale. A firm offers terms of 1/10, net 30.

a. What effective annual interest rate does the firm earn when a customer does not take the discount?

b. Without doing any calculations, explain what will happen to this effective rate if:

l. the discount is changed to 2%

ll. the credit period is increased to 40 days .

lll. the discount period is increased to 20 days.

c. What is the EAR for each scenario?

PLEASE HELP..