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Company X sells on a 3/25, net 90, basis. Customer Y buys goods with an invoice of $1,500. a. How much can company Y deduct
Company X sells on a 3/25, net 90, basis. Customer Y buys goods with an invoice of $1,500. a. How much can company Y deduct from the bill if it pays on day 25? Discount $ b. How many extra days of credit can company Y receive if it passes up the cash discount? Number of days days c. What is the effective annual rate of interest if Y pays on the due date rather than day 25? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Effective annual rate of interest %
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