Question
Been working on this one awhile and am striking out. Any help is appreciated. Thx! Suppose a firm purchases goods on credit with terms of
Been working on this one awhile and am striking out. Any help is appreciated. Thx!
Suppose a firm purchases goods on credit with terms of 3/10, net 25. What is the cost of trade credit (APR) to the firm if it always pays its bill on Day 8 or sooner? In your computations, assume there are 360 days in a year.
74.23%
24.74%
44.54%
0.00%
111.34%
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Public Finance and Public Policy
Authors: Jonathan Gruber
5th edition
1464143331, 978-1464143335
