Trade credit discount. Compute the approximate annual interest cost of not taking a discount using the following

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Trade credit discount. Compute the approximate annual interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations?

a. 2/5 net 30.

b. 2/10 net 30.

c. 2/15 net 30.

d. 2/20 net 30.

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Ali Khawaja

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