Question
A firm offers terms of 1/10, net 30. Requirement 1: What effective annual interest rate does the firm earn when a customer does not take
A firm offers terms of 1/10, net 30.
Requirement 1: |
What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
Requirement 2: |
What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
Requirement 3: |
What effective annual interest rate does the firm earn if the credit period is increased to 40 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
Requirement 4: |
What effective annual interest rate does the firm earn if the discount period is increased to 20 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
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