Cost of trade credit Firms usually offer their customers some form of trade credit. This allowance comes with certain terms of credit, which affect the cost of asset of sale for the buyer as well as the seller. Consider this case: Defense Dynamics Co. buys on terms of 3/20, net 60 from its chief supplier. If Defense Dynamics Co. receives an invoice for $1,545.77, what would be the true price of this invoice? $1,124.55 $1,499.40 $1,574.37 $1,724.31 What is the nominal annual cost of the trade credit that the supplier extends? 28.20% 32.43% 23.97% 26.79% Suppose Defense Dynamics Co. doesn't take the discount and chooses to pay On average, Defense Dynamics Co. pays its supplier on the 65th day after the sale. By how much does Defense Dynamics Co. decrease its actual nominal cost of trade credit by paying late? 3.14% 3.77% 3.30% 2.98%