Question

In: Finance

Cost of Trade Credit Calculate the nominal annual cost of trade credit under each of the...

Cost of Trade Credit

Calculate the nominal annual cost of trade credit under each of the following terms. Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.

  1. 1/15, net 30.

      %

  2. 2/10, net 60.

      %

  3. 3/10, net 55.

      %

  4. 2/10, net 55.

      %

  5. 2/15, net 35.

      %

Solutions

Expert Solution

a) 1/15, net 30

1% discount if paid within 15 days

Allowed payment days = 30

b. 2/10, net 60

c. 3/10, net 55

d. 2/10, net 55

e. 2/15, net 35

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Cost of Trade Credit Calculate the nominal annual cost of nonfee trade credit under each of...
Cost of Trade Credit Calculate the nominal annual cost of nonfee trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. 1/10 net 20; 2/10 net 60; 3/10 net 45; 2/10 net 45; 2/10 net 40
Calculate the nominal annual cost of trade credit under each of the following terms. Assume a...
Calculate the nominal annual cost of trade credit under each of the following terms. Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. 1/15, net 30. 24.58 % 2/10, net 55. 16.55 % 3/10, net 45.   % 2/10, net 45.   % 2/15, net 40. 29.80 %
Calculate the nominal annual cost of trade credit under each of the following terms. Assume a...
Calculate the nominal annual cost of trade credit under each of the following terms. Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. 1/15, net 30. % 2/10, net 60. % 3/10, net 50. % 2/10, net 50. % 2/15, net 35.
Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume...
Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. a. 1 10, net 20 b. 2 10, net 60 c. 3/10, net 45 d. 2/10, net 45 e. 2/10, net 40
Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume...
Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations. a. 1/15, net 25. Round your answer to two decimal places. b. 2/10, net 50. Round your answer to two decimal places. c. 3/10, net 55. Round your answer to two decimal places. d. 2/10, net 55....
Problem 16-07 Cost of Trade Credit Calculate the nominal annual cost of nonfree trade credit under...
Problem 16-07 Cost of Trade Credit Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations. 1/15, net 25. Round your answer to two decimal places. % 2/10, net 55. Round your answer to two decimal places. % 3/10, net 55. Round your answer to two decimal...
What are the nominal and effective costs of trade credit under the credit terms of 4/10,...
What are the nominal and effective costs of trade credit under the credit terms of 4/10, net 30? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places. Nominal cost of trade credit: Effective cost of trade credit:
Problem 16-03 Cost of Trade Credit What are the nominal and effective costs of trade credit...
Problem 16-03 Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit terms of 1/20, net 40? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost of trade credit % Effective cost of trade credit % Problem 16-04 Cost of Trade Credit A large retailer obtains merchandise under the credit terms of 2/15, net 40, but routinely takes 65...
Problem 16-03 Cost of Trade Credit What are the nominal and effective costs of trade credit...
Problem 16-03 Cost of Trade Credit What are the nominal and effective costs of trade credit under the credit terms of 1/10, net 30? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations. Nominal cost of trade credit % Effective cost of trade credit %
(Cost of Trade Credit) Calculate the effective cost of the following trade credit terms where payment...
(Cost of Trade Credit) Calculate the effective cost of the following trade credit terms where payment is made on the net due date. a. 3/10, net 30 b. 2/15, net 45 c. 3/15, net 60 d. 3/15, net 60
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT