The Torval Company made a credit sale of $15,000. The invoice was sent today with the terms, 3/15 net 60. This customer normally pays at the net date. What is the effective annual cost of not paying on day 15? Assume 360 days a year.

A) 107.72%.

B) 62.45%.

C) 42.67%.

D) 32.17%.

E) 27.59%.

The Answer is E but I just need help with the steps to get there. Please show steps.