Your firm purchases goods from its supplier on terms of 2.2 divided by 11 comma net 352.2/11, 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.)

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?

If your firm chooses not to take the discount and makes its payment on day 35, the effective annual cost is _____%. (Round to one decimal place.)

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?

If your firm chooses not to take the discount and makes its payment on day 45, the effective annual cost is____%. (Round to one decimal place.)