A firm offers terms of 1 4 10, net 60 a What effective annual inter...

A firm offers terms of 1.4/10, net 60. Â Â a. What effective annual interest rate does the firm...

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A firm offers terms of 1.4/10, net 60.
Â Â
a.
What effective annual interest rate does the firm earn when acustomer does not take the discount? (Use 365 days a year.Do not round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
b. What effective annual interest rate does the firm earn if theterms are changed to 2.4/10, net 60, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c. What effective annual interest rate does the firm earn if theterms are changed to 1.4/10, net 75, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
d. What effective annual interest rate does the firm earn if theterms are changed to 1.4/15, net 60, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)

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GIVEN A FIRM OFFERS TERMS OF 1410 NET 60 ANSWERa Discount Rate 140 Discount Period 10 days Credit Period 60 days Effective Annual Rate 1 Discount Rate 1 Discount Rate365 Credit Period Discount Period 1 Effective Annual Rate 1 0014 1 0014365 60 10 1 See Answer

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a.	What effective annual interest rate does the firm earn when acustomer does not take the discount? (Use 365 days a year.Do not round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
b.	What effective annual interest rate does the firm earn if theterms are changed to 2.4/10, net 60, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
c.	What effective annual interest rate does the firm earn if theterms are changed to 1.4/10, net 75, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)
d.	What effective annual interest rate does the firm earn if theterms are changed to 1.4/15, net 60, and the customer does not takethe discount? (Use 365 days a year. Do not roundintermediate calculations and enter your answer as a percentrounded to 2 decimal places, e.g., 32.16.)