I need the formula to use in order to solve the following:
If a company is offered accounts payable terms of "1.8%, 7 days, net 35 days" but the supplier allows the company to repay in 60 days.
Estimate the annualized opportunity cost for NOT taking advantage of the 1.8 percent discount for quick 7 day payment.
The annualized cost in a percentage, rounded two decimal places should be shown (?)
(NO cost or dollar amount is given.)