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Company X sells on a 1/20, net 90, basis. Company Y buys goods with an invoice of $2,500. How much can company Y deduct from
Company X sells on a 1/20, net 90, basis. Company Y buys goods with an invoice of $2,500. How much can company Y deduct from the bill if it pays on day 20? 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 20? Note: Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places
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