Calculate the effective annual percentage rate?

Question

of forgoing the cash discount under each of the following credit terms:

A. 2/10, net 60

B. 2/10, net 30

Answer 1

incomplete question - there is no invoice amount.

.02*X=Y

The discount is the same net terms are not relevant.

X=Invoice amount

Y=Discounted Value

.02 is the percentage of discount if the bill is paid within the first 10days.

Answer 2

I think this is the formula : (360/max days -discount days ) * (discount rate/1-discount rate)

b. = 36.73% computed as :

(360/30-10) * (2/98)

a. 14.69%