Company X sells on a 1/15, net 30 basis. Customer Y buys goods invoiced at $2,200. Assume 365 days a year.

How much can Y deduct from the bill if Y pays on day 15?

What is the effective annual rate of interest if Y pays on the due date rather than on day 15?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

How would you expect payment terms to change if:

Company X sells on a 1/15, net 30 basis. Customer Y buys goods invoiced at $2,200. Assume 365 days a year. a. How much can Y deduct from the bill if Y pays on day 15 ? b. What is the effective annual rate of interest if Y pays on the due date rather than on day 15? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. How would you expect payment terms to change if