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Company X sells on a 3/20, net 90, basis. Company Y buys goods with an invoice of $2,000. a. How much can company Y deduct

Company X sells on a 3/20, net 90, basis. Company Y buys goods with an invoice of $2,000. a. How much can company Y deduct from the bill if it pays on day 20? 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 20?

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