You have just purchased equipment for your company for $25 000 from your supplier, you were offered the credit terms 1/10, Net 30.

a. If you wanted to pay today, how much would you pay you supplier? $

b. What is the effective annual rate of the trade credit if you choose to pay on day 30? % (answer in percentage form; for example 3.54%, not 0.0354).

c. What is the effective annual rate of the trade credit if you instead choose to pay on day 45? % (answer in percentage form; for example 3.54%, not 0.0354).