Discounts

Each of the following situations involves the use of discounts:

1. How much discount may BON JOVI Inc. take in each of the following transactions? What was the annualized interest rate? Round your answers to the nearest whole number. When calculating the annualized rate use 360 days

A. BON JOVI purchases inventory costing $700, 1/10, n/30 Discount rate? Annual interest rate=?

b.

BON JOVI purchases new office furniture costing $2,700, terms 2/15, n/45. Discount rate? Annual interest rate=? Calculate the discount rate KABAT Co. received in each of these transactions. a. KABAT purchased office supplies costing $400 and paid within the discount period with a check for $384. Round your answer to the nearest whole number. % b. KABAT purchased merchandise for $3,000. It paid within the discount period with a check for $2,925. Round your answer to one decimal place. %