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You place an order for 200 units of shoe at a unit price of $ 80. Your supplier offers you conditions of 2/5, net 60.
You place an order for 200 units of shoe at a unit price of $ 80. Your supplier offers you conditions of 2/5, net 60. Work to do : a) How long do you have to pay to benefit from the reduction offered by your provider ? If you get the discount, how much should you pay? b) If you do not benefit from the reduction, how much interest do you pay implicitly for your credit? What is the implicit effective interest rate?
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