Newsome Inc.buys on terms of 3/15, net 45.It does not take the discount, and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

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Nom.% cost = Disc.%/(100 - Disc.%)×(365/(Actual days - Disc.days)
Nom.% cost = 3.09% ×8.11 = 25.09%
The effective discount % is earned N times per year; the product is the nominal annual cost rate.