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Asked Nov 20, 2019

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You have been hired by Coming Up Roses, a local greenhouse and nursery, to handle their accounts payable. Recently they placed a substantial order from Proven Winners for several varieties of perennials they do not grow from seed and the invoice had the terms of 5/15, n/45. The order amounted to $215,000. Coming Up Roses can borrow money from the local bank at 8½% ordinary interests.

- How much can Coming Up Roses save by borrowing the funds for 30 days to take advantage of the cash discount?

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**If payment for 15 days:**

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