Question
firm offers terms of 2/7, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the discount?
firm offers terms of 2/7, net 60.
a. | What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
b. | What effective annual interest rate does the firm earn if the terms are changed to 3/7, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
c. | What effective annual interest rate does the firm earn if the terms are changed to 2/7, net 75, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
d. | What effective annual interest rate does the firm earn if the terms are changed to 2/12, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) |
Effective annual interest rate | % |
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