Credit terms Company $x$ sells on a $\frac{1}{30},$ net $60$ basis. Customer $Y$ buys goods invoiced at $$1,000.$

a$.$ How much can $Y$ deduct from the bill if $Y$ pays on day $30?$

b$.$ What is the effective annual rate of interest if $Y$ pays on the due date rather than on day $30?$

c$.$ How would you expect payment terms to change under the following conditions?

i$.$ The goods are perishable.

ii$.$ The goods are not rapidly resold.

iii. The goods are sold to high$-$risk firms.