Question
A firm offers terms of 1.8/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the
A firm offers terms of 1.8/10, net 60.
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 2.8/10, net 60, 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 1.8/10, net 75, 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 1.8/15, net 60, 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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