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School uestion 2 (15%) A firm buys on terms of 3/15, net 45, It does not take the discount, and it generally pays after 60

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School uestion 2 (15%) A firm buys on terms of 3/15, net 45, It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? SOLUTION: Question 3 (15 % ) A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.) SOLUTION

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