10. Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Free Spirit Industries Inc. buys on terms of 1.5/15, net 45 from its chief supplier. If Free Spirit receives an invoice for $2,100.98, what would be the true price of this invoice? O o $1,448.63 $1,759.05 $2,069.47 $1,552.10 The nominal annual cost of the trade credit extended by the supplier is the discount and then chooses to pay its supplier late-so that on Suppose Free Spirit does not take advantage of average,. on average, Free Spirit will pay its supplier on the Soth day after the sale. As a result, Free Spirit can decrease its nominal cost of trade credit by by paying late