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Cost of Trade Credit What is the nominal and effective cost of trade credit under the credit terms of 1/20, net 40? Assume 365 days

Cost of Trade Credit

What is the nominal and effective cost of trade credit under the credit terms of 1/20, net 40? Assume 365 days in a year for your calculations. Round your answers to two decimal places. Do not round intermediate calculations.

Nominal cost of trade credit %
Effective cost of trade credit %

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