1. Cost of giving up cash discounts.

Determine the cost of giving up cash discounts under the following terms of ?sale:1/10 net 180.

(Note?: Assume a? 365-day year.)

The cost of giving up the cash discount is _______% Round the answers two decimal places.

2. Cash discount versus loan   Joanne Germano works in an accounts payable department of a major retailer. She has attempted to convince her boss to take the discount on the 3/15 net 60 credit terms most suppliers? offer, but her boss argues that giving up the 3?% discount is less costly than a? short-term loan at 11?%. Prove to whoever is wrong that the other is correct.  

?(?Note: Assume a? 365-day year.)

The cost of giving up the cash discount is ______% Round two decimal places