What the answer to C? And please EXPLAIN the logic.

Recording Cash Discounts Schrand Corporation purchases materials from a supplier that offers credit terms of 2/15, n/60. It purchased $12,500 of merchandise inventory from that supplier on January 20, 2019. Required a. Assume that Schrand Corporation paid the invoice on February 15, 2019. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount method. General Journal Description Debit Credit 1/20 Inventory 12,250 0 Accounts payable 0 12,250 2/15 Accounts payable 12,250 0 Interest expense-discounts lost 250 0 Cash 0 12,500 b. Set up the necessary T-accounts and post the journal entries from question a to the accounts. Cash (A) Accounts Payable (L) 1/20 0 1/20 0 12.250 2/15 12,500 2/15 12,250 0 0 1/20 2/15 0 Inventory (A) 12,250 0 1/20 2/15 Interest Expense-Discounts Lost (E) 0 0 250 0 0 0 c. Compute the cost of a lost discount as an annual percentage rate. Round your answer to one decimal place. 1.6 X %