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 due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations.

1. 1/15, net 30. Round your answer to two decimal places.

1. 2/10, net 60. Round your answer to two decimal places

1. 3/10, net 50. Round your answer to two decimal places.

1. 2/10, net 55. Round your answer to two decimal places.

1. 2/15, net 45. Round your answer to two decimal places.