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

a. What is the effective annual rate of the trade credit if you choose to pay on day 25? Answer in percentage form with two decimals (i.e. 34.55%, not 0.3455).

b. What is the effective annual rate of the trade credit if you instead choose to pay on day 30? Answer in percentage form with two decimals (i.e. 34.55%, not 0.3455).