A merchant buys a bill of goods requiring the payment of 1500php at the end of 180 days. He is offered a 5% discount for cash in 30 days. What is the highest rate at which he could afford to borrow money in order to take advantage of the discount?
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A merchant buys a bill of goods requiring the payment of 1500php at the end of 180 days. He is offered a 5% discount for cash in 30 days. What is the highest rate at which he could afford to borrow money in order to take advantage of the discount?
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- A merchant buys a bill of goods requiring the payment of $1,500 at the end of 180 days. He is offered a 5% discount for cash in 30 days.What is the highest rate at which he could afford to borrow money in order to take advantage of the discount?A small businessman is about to acquire a machine whose price is $ 15,000 with VAT included. If the cash purchase obtains a 15% discount, if you purchase it on credit you must pay an initial installment equivalent to 25% and the balance in six installments, with a grace period of one month without interest payment and the rest with a 3.8 % monthly. It asks:to. Payment in cash,b. The installment to pay on creditc. The total amount paid on creditYou have just purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within 35 days. If you pay within the first 8 days, you get a discount of 1.2%. When would you pay? Why? What is the effective interest rate? Under which circumstances would you take the trade credit?
- Kumi Ltd permits its customers to pay with a credit card or to receive a percentage discount ? for paying cash. For credit card purchases, the company receives 97% of the purchase price one-half month later. Determine the value of ? that would make the two payment methods equivalent if the company’s annual rate of return is 14%.A MERCHANT ACQUIRES A LOT OF MERCHANDISE WORTH $11,500.00WHICH AGREES TO SETTLE THROUGH AN IMMEDIATE PAYMENT OF $4,800.00 AND A FINAL PAYMENT 6 MONTHS LATER. YOU AGREE TO PAY 13% SIMPLE ANNUAL INTEREST ON THE BALANCE, HOW MUCH WILL YOU PAY WITHIN 6 MONTHS?A) Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month, what will be your balance to be paid in the third month if we consider an interest rate of 18% annual compounded monthly? Consider the third month as the focal date. R $ $ 63 655.56 B) A merchant acquires articles for his business for a value of $8,600 paying 30% in cash and the rest with direct financing from the supplier; Two months later he makes a payment of $2,000, agreeing to pay off the debt with a final payment after 6 months. Find the value of the final payment considering that the money is financed at 7%. R $ 4.184,03
- A washer-dryer combination can be purchased from a department store by making monthly credit card payments of $56.86 for two-and-a-halfyears. The first payment is due on the date of sale and interest is 22% compounded monthly. (a) What is the purchase price? (b) How much will be paid in installments? (c) How much is the cost of financing? (d) If an additional $9.00 per month is added to cover a service contract, what is the value of the entire contract on the date of sale?A store offers its salespeople a table with coefficients to be applied to the cash sale value of its products in case the customer needs to finance the purchase of the products. Considering that the store charges a compound interest rate of 6% per month on installment sales, calculate the value of these coefficients in the following situations: a) 12 monthly installments, the first being paid after thirty days. b ) 24 monthly installments , the first being paid upon purchase . c) 36 monthly installments, the first being paid after six months.A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten days; otherwise, the bill is due at the end of 60 days. Would you recommend borrowing from a bank at an 18 percent annual interest rate to take advantage of the cash discount offer? Yes No
- A retailer owes a wholesaler $700,000 due in 45 days. If the payment is 15 days late, there is a 1% penalty charge. Since the bill isn't due immediately, the retailer can invest the $700,000 in a certificate of deposit and make money on the interest. The retailer has two options: a 45-day certificate of deposit (CD) earning 8% per year simple interest or a 60-day certificate earning 9% per year simple interest. How much interest would the retailer earn? Use 360 days in a year. (Round your answers to the nearest cent.) 45-day certificate $ 60-day certificate $ If the retailer opts for the 60-day certificate of deposit, he will be late on his payment to the wholesaler. How much will the penalty be if he is late on his payment to the wholesaler? $ How much will the retailer make in total if he opts for the 60-day certificate and has to pay the penalty out of the proceeds of the interest earned on the CD? (Round your answer to the nearest cent.) $ Is it better to take the 45-day…SHOW SOLUTIONS A merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is the largest simple interest at which the merchant could afford to borrow in order to pay in cash today?You owe $3,000 on your Credit card with 24% APR. What would be the minimum payment amount if your credit card company requires at least 5% each month?
