A firm currently offers terms of sale of 2/15, net 30. Calculate the effective annual rate. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % a-1. Calculate the effective annual rate if the terms are changed to 3/15, net 30. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? Increase Decrease b-1. Calculate the effective annual rate if the terms are changed to 2/25, net 30. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % b- What effect does a decrease in the extra days of credit have on the implicit 2. interest rate charged to customers that pass up the discount? Increase Decrease C-1. Calculate the effective annual rate if the terms are changed to 2/15, net 20. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % c-2. Is there any difference between the implicit interest rate for terms of 2/25, net 30 and 2/15, net 20? Yes No A firm currently offers terms of sale of 2/15, net 30. Calculate the effective annual rate. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % a-1. Calculate the effective annual rate if the terms are changed to 3/15, net 30. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % a-2. What effect does an increase in the discount rate have on the implicit interest rate charged to customers that pass up the discount? Increase Decrease b-1. Calculate the effective annual rate if the terms are changed to 2/25, net 30. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % b- What effect does a decrease in the extra days of credit have on the implicit 2. interest rate charged to customers that pass up the discount? Increase Decrease C-1. Calculate the effective annual rate if the terms are changed to 2/15, net 20. (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Effective annual rate % c-2. Is there any difference between the implicit interest rate for terms of 2/25, net 30 and 2/15, net 20? Yes No
