net
Question
Company X sells on a 1/25, net 60, basis. Customer Y buys goods with an invoice of $5,000.
| a. | How much can company Y deduct from the bill if it pays on day 25? |
| Discount | $ |
| b. | How many extra days of credit can company Y receive if it passes up the cash discount? |
| Number of days | days |
| c. | What is the effective annual rate of interest if Y pays on the due date rather than day 25? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) |
| Effective annual rate | % |
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"
