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 1/ 15 net 45 credit terms most suppliers offer, but her boss argues that giving up the 1% discount is less costly than a short-term loan at 10%. 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 to two decimal places.)