Detailed Answer
Answer (D) is correct. The annualized cost of not taking a discount can be calculated with this formula: Cost of not taking discount = [1% ÷ (100% – 1%)] × [360 days ÷ (25 days – 10 days)] = (1% ÷ 99%) × (360 days ÷ 15 days) = 24 × 1.0101%
= 24.24%