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Q1 a. A firm buys on terms of 3/10, net 30. What is the cost of trade credit under these terms? Assume a 360-day year
Q1 a. A firm buys on terms of 3/10, net 30. What is the cost of trade credit under these terms? Assume a 360-day year and present your answer using the simple interest method. Next, using the same credit terms present your answer according to the compound interest method using a 365-day year.
b. Rework your answers above based on credit terms of 1/7 net 30. Be sure to provide your answer for a 360-day year (simple interest) and a 365-day year (compound interest method).
Q1 a. A firm buys on terms of 3/10, net 30. What is the cost of trade credit under these terms? ay year and present your answer using the simple interest metho ext, using the same credit terms present your answer according to the compound interest method using a 365-day year b. Rework your answers above based on credit terms of 1/7 net 30. Be sure to provide your answer for a 360-day year (simple interest) and a 365-day year (compound interest method)Step by Step Solution
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