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(Trade credit discounts) Determine the effective annualized cost of forgoing the trade credit discount on the following terms: a. 2/7, net 40 b. 2/5, net

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(Trade credit discounts) Determine the effective annualized cost of forgoing the trade credit discount on the following terms: a. 2/7, net 40 b. 2/5, net 20 c. 2/5, net 25 d. 4/9, net 60 e. 4/8, net 80 f. 5/7, net 90 a. What is the effective annualized cost of forgoing the discount on the trade credit terms of 2/7, net 40 ? Use a 360 -day year. % (Round to two decimal places.)

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