You purchase a television from a local store. They offer a discount of 1/15 net 60 and you can get a short-term bank loan at 7% APR. If you don't get a loan, you'll need to wait for payday in 60 days to pay off your balance.

Pick all that is true:

1. The effective annual cost of the discount rate is 1.01%

2. You shouldn't borrow from the bank and instead wait until payday.

3. You should borrow money on day 15 at 7% APR and pay off the TV.

4. The effective annual cost of the discount rate is 8.19% The effective annual cost of the discount rate is 8.19%