You place an order for 400 units of inventory at a unit price of $205. The supplier offers terms of 1/12, net 90.

a-1	How long do you have to pay before the account is overdue?

Days until overdue

days

a-2	If you take the full period, how much should you remit?

Remittance

$

b-1	What is the discount being offered?

Discount offered

%

b-2	How quickly must you pay to get the discount?

Number of days

days

b-3	If you do take the discount, how much should you remit?

Remittance

$

c-1	If you dont take the discount, how much interest are you paying implicitly?

Implicit interest

$

c-2	How many days credit are you receiving?

Days' credit

days

Hints

References