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The credit terms offered to your company by your suppliers are 2/10, net 30. Your company does not take discounts but pays after 20 days

The credit terms offered to your company by your suppliers are 2/10, net 30. Your company does not take discounts but pays after 20 days out of convenience.

What is the effective annual cost of your company's current practice?

What would the effective annual cost be if your company pays on the due date, that is, on Day 30? Assume a 365-day year in each case.

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