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Question 3 (1 point) Free and Costly Trade Credit Using the information below, calculate the nominal cost of costly trade credit and its effective annual

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Question 3 (1 point) Free and Costly Trade Credit Using the information below, calculate the nominal cost of costly trade credit and its effective annual rate (EAR) 365 days per year Purchases = $1,000,000 Terms: 2/20, net 45 Plan to pay on day 60 Nominal = 2.04% and EAR = 9.13% Nominal = 18.62% and EAR = 9.13% Nominal = 9.13% and EAR = 18.62% Nominal = 18.62% and EAR = 20.24%

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