The Reynolds Company buys from its suppliers on terms of $2/10,$ net $40.$ Reynolds has not been utilizing the discount offered and has been taking $55$ days to pay its bills. The suppliers seem to accept this payment pattern, and Reynolds credit rating has not been hurt Mr$.$ Duke, Reynolds Company's vice$-$president, has suggested that the company begin to take the discount offered. Mr$.$ Duke proposes the company borrow from its bank at a stated rate of $14$ percent. The bank requires a $20$ percent compensating balance on these loans. Current account balances would not be available to meet any of this required compensating balance.a$.$ Calculate the cost of not taking a cash discount. $($Use $365$ days in a year. Do not round intermediate calculations. Round the final answer to $2$ decimal places.$)$Cost of not taking a cash discountb. Calculate the annual rate of interest calculations. Round the finel answecompany borrow from the bank. $($Use $365$ days in e year. Do not round intermediate ecimal places.$)$Annual rate of Interestc. Do you agreee's proposal?