Cost of Trade Credit

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.

1. 1/15, net 20.

   %

2. 2/10, net 60.

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3. 3/10, net 45.

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4. 2/10, net 55.

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5. 2/15, net 40.

   %