Question
A firm offers terms of 1.4/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the
A firm offers terms of 1.4/10, net 30.
a. | What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year.Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Effective annual interest rate | % |
b. | What effective annual interest rate does the firm earn if the terms are changed to 2.4/10, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Effective annual interest rate | % |
c. | What effective annual interest rate does the firm earn if the terms are changed to 1.4/10, net 45, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Effective annual interest rate | % |
d. | What effective annual interest rate does the firm earn if the terms are changed to 1.4/15, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Effective annual interest rate | % |
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