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Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60. a. What does 3/15 n60 mean? b. If you pay the
Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60.
a. What does 3/15 n60 mean?
b. If you pay the bill on the 14th day after the purchase, what is the cost of the trade credit you have used for the 14-day period?
c. If you pay the bill on the 50th day after the purchase, what is the cost of the trade credit you have used for the 35-day period after the discount period ended?
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