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Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount   pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %   delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %

Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount   pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %   delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %

Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 8P: Captain Whitman Ship Supplies offers terms of 3/15, net 45. If a purchaser takes the discount and...
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Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount

 

  1. pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.

     

      Credit terms of
      3/20, net 65 2.5/15, net 75
    APR   %   %
    rEAR   %   %

     

  2. delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.

     

      Credit terms of
      3/20, net 65 2.5/15, net 75
    APR   %   %
    rEAR   %   %
     
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