This problem is confusing for because it is so long please help and this problem is done in excel

either the final day of the cash at on its February 27 purchase by paying $980 on March 10 In Example 15.2, we saw that Lawrence Industries could Industries could take the ca n March 10. If Lawrenc 20 days, the firm must payan extra S2o,or $1,000 rather three the cash discount, it can pay on March 30. To keep can pay onNs20. or $1,000 rather than S98 To keep its money for words, if the firm pays on March 30, it wil ll pay $980 (what it couldh a, in xtra $20 is like interest on a loan, and in thie paid March 10, but the supplier is willing to accept S980 plus $20 in int it supple $980 is like the loan principal. Lawrence Industries owes $980 March 10) plus$20. The e es $980 to its supplier in this case 30, Figure 15.1 shows the payment options that are open to thecor To calculate the implied interest rate associated with giving company ted with giving up the ca count, we simply treat S980 as the loan principal, $20 as the i he interest (the time frorn March 10 to March 30) as the term of the loan and 20 off that Lawrence faces is that it can pay $980 on March 10 or $980 Plu: interest 20 days later on March 30, Therefore, the interest rate that Lau paying by giving up the discount is 2.04% ($20 $980). Keep in mind rence at 2.04% interest rate applies to a 20-day loan. To calculate an annualized rate, we multiply the interest rate on this transaction times the number of2 eriods during a year. The general expression for calculating the annual ge cost of giving up a cash discount can be expressed as Cost of giving up cash discount = CD 365 100%-CD N quation 15.1 and the related discussions are based on the assumption that only one discount is offered. that multiple discounts are offered, calculation of the cost of giving up the discount must be made for native