Your firm purchases goods from its supplier on terms of 2 / 15, net 35.

a. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 35? ______%

b. What is the effective annual cost to your firm if it chooses not to take the discount and makes its payment on day 45? ______%

Hint: Use a 365-day year.)