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Company X sells on a 1 1 0 / , net 9 0 , basis. Company Y buys goods with an invoice of $ 4
Company X sells on a
net basis. Company Y buys goods with an invoice of $
How much can company Y deduct from the bill if it pays on day
Note: Do not round intermediate calculations.
How many extra days of credit can company Y receive if it passes up the cash discount?
What is the effective annual rate of interest if Y pays on the due date rather than day
Note: Use days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to decimal places.
a Discount
b Number of days days
c Effective annual rate
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