if Mavericks decides to forego discounts, then, 15.89% would be the effective percentage of cost of its trade credit.
Effective cost of not taking discount = (1 + (%Discount / (1-Discount%)^ (365/(Total days - Discount days)) -1
Effective cost of not taking discount = (1 + (2% / (100%-2%))^(365/(60-10)) -1
Effective cost of not taking discount = (1.02040816327^7.3) - 1
Effective cost of not taking discount = 1.15890983226 - 1
Effective cost of not taking discount = 0.15890983226
Effective cost of not taking discount = 15.89%
Therefore, if Mavericks decides to forego discounts, then, 15.89% would be the effective percentage of cost of its trade credit.
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