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(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month
(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 4/5, net 45 b. 3/15, net 30 c. 4/15, net 60 d. 2/10, net 60 a. When payment is made on the net due date, the APR of the credit terms of 4/5, net 45 is %. (Round to two decimal places.) The EAR of the credit terms of 4/5, net 45 is %. (Round to two decimal places.) b. When payment is made on the net due date, the APR of the credit terms of 3/15, net 30 is %. (Round to two decimal places.) The EAR of the credit terms of 3/15, net 30 is %. (Round to two decimal places.) c. When payment is made on the net due date, the APR of the credit terms of 4/15, net 60 is %. (Round to two decimal places.) The EAR of the credit terms of 4/15, net 60 is %. (Round to two decimal places.) d. When payment is made on the net due date, the APR of the credit terms of 2/10, net 60 is %. (Round to two decimal places.) The EAR of the credit terms of 2/10, net 60 is %. (Round to two decimal places.)
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