Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help ASAP Squared Equipment needs $380,000 to take a cash discount of 2110 , net 80 , A banker will loan the money for

please help ASAP
image text in transcribed
Squared Equipment needs $380,000 to take a cash discount of 2110 , net 80 , A banker will loan the money for 70 days at an interest cost of $6,300. Please submit all colculations on Moodle. o. What is the annual rate on the bank loan? [2 Marks] (Use 365 days in a year. Do not round intermediote calculations. Round the final answer to 2 decimal places.) Annual rate \% b. How much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 80 days instead of 10 days? [2 Marks] (Use 365 days in a year. Do not round intermediate calculations. Round the final answer to 2 decimol places.) Cost of not taking a cash discount c. Should the firm borrow the money to take the discount? [ 1 Mark] No Yes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Making Sense Of School Finance

Authors: Clinton Born

1st Edition

1475856652, 978-1475856651

More Books

Students also viewed these Finance questions

Question

=+a) How many bulls-eyes do you expect her to get?

Answered: 1 week ago