Tangshan Mining Was Extended Credit Terms of 3/15 Net 30

Multiple Choice

Tangshan Mining was extended credit terms of 3/15 net 30 EOM.The cost of giving up the cash discount,assuming payment would be made on the last day of the credit period,would be ________.If the firm were able to stretch its accounts payable to 60 days without damaging its credit rating,the cost of giving up the cash discount would only be ________.

A) 70.99%;14.25%
B) 70.99%;15.25%
C) 73.26%;20.09%
D) 73.26%;25.09%
E) none of the above