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Company x sells on a 3 2 2 , net 6 5 , basis. Customer Y buys goods with an invoice of $ 1 ,
Company sells on a net basis. Customer buys goods with an invoice of $
a How much can deduct from the bill if it pays on day Round your answer to decimal place.
b How many extra days of credit can receive if it passes up the cash discount? Round your answer to the
nearest whole.
c What is the effective annual rate of interest if pays on the due date rather than day Round your answer
to decimal places.
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