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You just purchased $75,000 in goods from your supplier on trade credit terms of 3/5 net 30. Your oppor-tunity cost of funds is 5 percent.

You just purchased $75,000 in goods from your supplier on trade credit terms of 3/5 net 30. Your oppor-tunity cost of funds is 5 percent. On which day should you pay?"

Using the information in problem above , at what cash discount percentage will you be indifferent between paying on day 5 or day 30?

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