[Solved] Busy Ben Carpenters (Pty) Ltd buys the wo

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Busy Ben Carpenters (Pty) Ltd buys the wood used in the factory from Western Wood (Pty) Ltd on the following terms: Purchases: R500,000 Terms: 1/10,

Busy Ben Carpenters (Pty) Ltd buys the wood used in the factory from Western Wood (Pty) Ltd on the following terms:

Purchases: R500,000

Terms: 1/10, 30 net Payment: Only on day 45 Required:

2.1 What is the EAR (Effective Annual Rate) on the trade credit?

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