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( Annual percentage yield ) Compute the cost of the following trade credit terms using the compoundingformula, or effective annual rate. Note : Assume a30-day

(Annual percentage yield) Compute the cost of the following trade credit terms using the compoundingformula, or effective annual rate. Note: Assume a30-day month and360-day year.

a. 4

4/15

15, net 30

30

b. 2

2/10

10, net 45

45

c. 2

2/15

15, net 60

60

d. 3

3/10

10, net 60

60

a. When payment is made on the net duedate, the APR of the credit terms of 4

4/15

15, net 30

30 is

nothing

%. (Round to two decimalplaces.)

The EAR of the credit terms of 4

4/15

15, net 30

30 is

nothing

%. (Round to two decimalplaces.)

b. When payment is made on the net duedate, the APR of the credit terms of 2

2/10

10, net 45

45 is

nothing

%. (Round to two decimalplaces.)

The EAR of the credit terms of 2

2/10

10, net 45

45 is

nothing

%. (Round to two decimalplaces.)

c. When payment is made on the net duedate, the APR of the credit terms of 2

2/15

15, net 60

60 is

nothing

%. (Round to two decimalplaces.)

The EAR of the credit terms of 2

2/15

15, net 60

60 is

nothing

%. (Round to two decimalplaces.)

d. When payment is made on the net duedate, the APR of the credit terms of 3

3/10

10, net 60

60 is

nothing

%. (Round to two decimalplaces.)

The EAR of the credit terms of 3

3/10

10, net 60

60 is

nothing

%.

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