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Company X sells on a 1/30, net 60 basis. Customer Y buys goods invoiced at $1,000. a. How much can Y deduct from the bill

Company X sells on a 1/30, net 60 basis. Customer Y buys goods invoiced at $1,000.

a.

How much can Y deduct from the bill if Y pays on day 30? (Round your answer to the nearest dollar amount.)

Amount deducted $

b.

What is the annual rate of interest if Y pays on the due date rather than on day 30? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Effective compound annual rate %

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