Cash discounts

$58(20$min$)$

Flint: $R=\underset{?}{lim}\frac{1}{PT}$

P$13-5$C$.$ Angic Co$.$ bought merchandise for $$1,000$ with credit terms of $\frac{2}{10},\frac{n}{30}.$ Because of the bookkeper's incompetence, the $2\%$ cash discount was missed. The bookkeeper told Pete Angie, the owner, not to get excited. After all, it was a $$20$ discount that was missed$-$not hundreds of dollars. Act as Mr$.$ Angie's assistant and show the bookkeeper that his $$20$ represents a sizeable equivalent interest cost. In your calculation, assume a $360-$day year. Make some written recommendations so that this will not happen again.