Please use the figures indicated in the problem. Thanks

Company X sells on a 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? (Round your answer to the nearest dollar amount.)

Amount deducted

$

b.	What is the effective annual rate of interest if Y pays on the due date rather than on day 30? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Effective compound annual rate

%

c.	How would you expect payment terms to change if

(i)	The goods are perishable.	(Click to select)LongerShorter
(ii)	The goods are not rapidly resold.	(Click to select)LongerShorter
(iii)	The goods are sold to high-risk firms.	(Click to select)ShorterLonger