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Suppose a firm purchases goods on credit with terms of 3/10, net 25. What is the cost of trade credit (APR) to the firm if
- Suppose a firm purchases goods on credit with terms of 3/10, net 25. What is the cost of trade credit (APR) to the firm if it always pays its bill on Day 8 or sooner? In your computations, assume there are 360 days in a year.
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| a. | 74.23% |
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| b. | 24.74% |
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| c. | 44.54% |
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| d. | 0.00% |
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| e. | 111.34% |
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Investing In Your Future
Authors: National Association Of Investors Corporation
2nd Edition
0538438819,1111794383
