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2. Credit terms with a particular vendor of 3/15, net 60. What is the approximate cost of trade credit? The 3 / 15 represents 3%
| 2. Credit terms with a particular vendor of 3/15, net 60. What is the approximate cost of trade credit? | |||||||||||||
| The 3 / 15 represents 3% discount if paid in 15 days, full amount to be paid in 60 days. | |||||||||||||
| Approximate cost: | |||||||||||||
| 24.74% | Cost of this credit | ||||||||||||
| Extra Credit: If the hospital purchases $15,000,000 in supplies from this vendor, what are the amounts of the free trade credits and costly trade credits? | |||||||||||||
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Market Regulations And Finance
Authors: Ratan Khasnabis, Indrani Chakraborty
2014th Edition
8132217942, 978-8132217947
