P2 Cost of giving up early payment discounts Determine the cost of giving up the discount under each of the following terms of sale (Note Assume a 365 day year ) a 2 10 net 30 b 1 10 net 30 c 1 10 net 45 d 3 10 net 90 e 1 10 net 60 f 3 10 net 30 g 4 10 net 180 Answer fill in the blue boxes below a 2 10 net 30 Discount rate 2 Discount period 10 Credit period 30 Cost of giving up the discount b 1 10 net 30 Discount rate 1 Discount period 10 Credit period 30 Cost of giving up the discount c 1 10 net 45 Discount rate 1 Discount period 10 Credit period 45 Cost of giving up the discount d 3 10 net 90 Discount rate 3 Discount period 10 Credit period 90 Cost of giving up the discount e 1 10 net 60 Discount rate 1 Discount period 10 Credit period 60 Cost of giving up the discount f 3 10 net 30 Discount rate 3 Discount period 10 Credit period 30 Cost of giving up the discount g 4 10 net 180 Discount rate 4 Discount period 10 Credit period 180 Cost of giving up the discount

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P2 Cost of giving up early payment discounts  Determine the cost of giving up the discount under each of the following terms of sale  (Note  Assume a 365 day year ) a  2 10 net 30  b  1 10 net 30  c  1 10 net 45  d  3 10 net 90  e  1 10 net 60  f  3 10 net 30  g  4 10 net 180  Answer   fill in the blue boxes below  a  2 10 net 30  Discount rate 2  Discount period 10 Credit period 30 Cost of giving up the discount b  1 10 net 30  Discount rate 1  Discount period 10 Credit period 30 Cost of giving up the discount c  1 10 net 45  Discount rate 1  Discount period 10 Credit period 45 Cost of giving up the discount d  3 10 net 90  Discount rate 3  Discount period 10 Credit period 90 Cost of giving up the discount e  1 10 net 60  Discount rate 1  Discount period 10 Credit period 60 Cost of giving up the discount f  3 10 net 30  Discount rate 3  Discount period 10 Credit period 30 Cost of giving up the discount g  4 10 net 180  Discount rate 4  Discount period 10 Credit period 180 Cost of giving up the discount

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P2 Cost of giving up early payment discounts. Determine the cost of giving up the discount under each of the following terms of sale. (Note:

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P2 Cost of giving up early payment discounts. Determine the cost of giving up the discount under each of the following terms of sale. (Note: Assume a 365-day year.)

a.	2/10 net 30.
b.	1/10 net 30.
c.	1/10 net 45.
d.	3/10 net 90.
e.	1/10 net 60.
f.	3/10 net 30.
g.	4/10 net 180.

Answer - fill in the blue boxes below.

a.	2/10 net 30.

	Discount rate	2%
	Discount period	10
	Credit period	30
	Cost of giving up the discount

b.	1/10 net 30.

	Discount rate	1%
	Discount period	10
	Credit period	30
	Cost of giving up the discount

c.	1/10 net 45.

	Discount rate	1%
	Discount period	10
	Credit period	45
	Cost of giving up the discount

d.	3/10 net 90.

	Discount rate	3%
	Discount period	10
	Credit period	90
	Cost of giving up the discount

e.	1/10 net 60.

	Discount rate	1%
	Discount period	10
	Credit period	60
	Cost of giving up the discount

f.	3/10 net 30.

	Discount rate	3%
	Discount period	10
	Credit period	30
	Cost of giving up the discount

g.	4/10 net 180.

	Discount rate	4%
	Discount period	10
	Credit period	180
	Cost of giving up the discount