Question

Company X sells on a 1/20, net 90, basis. Company Y buys goods with an invoice of $2,500. />a. How much can company Y deduct from the bill if it pays on day 20? (Do not round intermediate calculations.)
b. How many extra days of credit can company Y receive if it passes up the cash discount? c. What is the effective annual rate of interest if Y pays on the due date rather than day 20? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"