Required: a. A firm currently offers terms of sale of 2/30, net 50. Calculate the effective annual rate. a-1. Calculate the effective annual rate if the terms are changed to 3/30, net 50. a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount b-1. Calculate the effective annual rate if the terms are changed to 2/40, net 50. b-2. What effect does a decrease in the extra days of credit have on the implicit interest rate charged to customers that pass up the discount? C-1. Calculate the effective annual rate if the terms are changed to 2/30, net 40. c-2. Is there any difference between the implicit interest rate for terms of 2/40, net 50 and 2/30, net 40? Complete this question by entering your answers in the tabs below. Reg A Reg A1 and A2 Req B1 and B2 Reg C1 and C2 A firm currently offers terms of sale of 2/30, net 50. Calculate the effective annual rate. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate Rona Req A1 and A2 > Required: a. A firm currently offers terms of sale of 2/30, net 50. Calculate the effective annual rate. a-1. Calculate the effective annual rate if the terms are changed to 3/30, net 50. a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? b-1. Calculate the effective annual rate if the terms are changed to 2/40, net 50. b-2. What effect does a decrease in the extra days of credit have on the implicit interest rate charged to customers that pass up the discount? C-1. Calculate the effective annual rate if the terms are changed to 2/30, net 40. c-2. Is there any difference between the implicit interest rate for terms of 2/40, net 50 and 2/30, net 40? Complete this question by entering your answers in the tabs below. Reg A Req A1 and A2 Req B1 and B2 Reg CI and C2 a-1. Calculate the effective annual rate if the terms are changed to 3/30, net 50. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? Show less % a-1. a-2 Effective annual rate Effect on implicit interest rate Req B1 and B2 > Increase Decrease Required: a. A firm currently offers terms of sale of 2/30, net 50. Calculate the effective annual rate. a-1. Calculate the effective annual rate if the terms are changed to 3/30, net 50. a:2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? b-1. Calculate the effective annual rate if the terms are changed to 2/40, net 50. b-2. What effect does a decrease in the extra days of credit have on the implicit interest rate charged to customers that pass up the discount? C-1. Calculate the effective annual rate if the terms are changed to 2/30, net 40. c-2. Is there any difference between the implicit interest rate for terms of 2/40, net 50 and 2/30, net 40? Complete this question by entering your answers in the tabs below. Req A Reg A1 and A2 Req B1 and B2 Reg Ci and C2 b-1. Calculate the effective annual rate if the terms are changed to 2/40, net 50. (Use 365 days in a year. Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b-2. What effect does a decrease in the extra days of credit have on the implicit interest rate charged to customers that pass up the discount? Show less 6-1. Etloctivo annunt rate b.2. Effect on implicit interest rate ReqC1 and C2 > Increase DAE Required: a. A firm currently offers terms of sale of 2/30, net 50. Calculate the effective annual rate. a-1. Calculate the effective annual rate if the terms are changed to 3/30, net 50. a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? b-1. Calculate the effective annual rate if the terms are changed to 2/40, net 50. b-2. What effect does a decrease in the extra days of credit have on the implicit interest rate charged to customers that pass up the discount? c-1. Calculate the effective annual rate if the terms are changed to 2/30, net 40. c-2. Is there any difference between the implicit interest rate for terms of 2/40, net 50 and 2/30, net 40? Complete this question by entering your answers in the tabs below. Req A Reg A1 and A2 Reg 81 and B2 Reg C1 and 2 1. Calculate the effective annual rate if the terms are changed to 2/30, net 40. (Use 365 days in a year. Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) c-2. Is there any difference between the implicit Interest rate for terms of 2/40, net 50 and 2/30, net 402 C-1. Effective annual rate C-2 Is there any difference between the implicit interest rate for terms of 2/40, net 50 and 2/30, net 407 Req B1 and B Yes No
