Book Depot Inc. sells on terms of 1/15, net 55. What is the implicit cost of trade credit under these terms? Use a 365-day year.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Answer:

9.22

%

Question 3

0 / 1 point

Pets Store Inc. sells on terms of 1/20, net 70. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)

Answer:

(7.61)

%