Shoreline Supply offers their customers trade credit with terms 2/15 net 30. This implies that

• Shoreline's customers have very little incentive to pay within the discount period.

• paying within 30 days will let a customer deduct 15% off the invoice price.

• most customers will pay their bill within 2 days in order to take the maximum discount.

• the annual financing cost of failing to pay within 15 days is about 48%.