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Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $3,500. a. How much can company Y deduct
Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $3,500.
a. How much can company Y deduct from the bill if it pays on day 15?(Do not round intermediate calculations.)
b.How many extra days of credit can company Y receive if it passes up the cash discount?
c.What is the effective annual rate of interest if Y pays on the due date rather than day 15?(Use 365 days in a year. Do not round intermediate calculations.
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