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Cost of Trade Credit If a firm buys under terms of 1/15, net 45, but actually pays on the 20th day and still takes the

Cost of Trade Credit

  1. If a firm buys under terms of 1/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume 365 days in year for your calculations. Do not round intermediate calculations. Round your answer to two decimal places.

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