Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. calculate the nominal annual cost of nonfree trade

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume...

50.1K

Verified Solution

Question

Finance

Calculate the nominal annual cost of nonfree trade credit undereach of the following terms. Assume that payment is made either onthe due date or on the discount date. Assume 365 days in year foryour calculations. Do not round intermediate calculations.

a. 1/15, net 25. Round your answer to two decimal places.

b. 2/10, net 50. Round your answer to two decimal places.

c. 3/10, net 55. Round your answer to two decimal places.

d. 2/10, net 55. Round your answer to two decimal places.

e. 2/15, net 45. Round your answer to two decimal places.

Answer & Explanation Solved by verified expert
4.3 Ratings (864 Votes)
Case A Discount Rate 1 Discount Period 15 days Credit Period 25 days Nominal Annual Cost Discount Rate 1 Discount Rate 365 Credit Period Discount Period Nominal Annual Cost 001 1 001 365 25 15 Nominal Annual Cost 001 099 365 10 Nominal Annual Cost 0010101 365000 Nominal Annual Cost 03687 or 3687    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

Explain why surface tension and viscosity decrease with increasing temperature. Why do substances with high surface tensions...

Civil Engineering
1.2K views

Determine the Terzaghi’s Bearing Capacity of a square footing 2.25x2.25m located at a depth of 1.24...

Advance Math
1.2K views

1) Find the solution of the given initial value problem and describe the behavior of the...

General Management
1.2K views

Strategic planning in dynamic environment 5. Identify Porter’s five competitive forces and explain how they determine industry...

Advance Math
1.2K views

if order of a= order of b in a finite Abelian group , is order of...

Physics
1.2K views

Suppose in Example 21 11 in the textbook that x 0 280 m Q 5...

Physics
1.2K views

3 A rectangular block of mass M and height a is resting on a smooth...

Algebra
1.2K views

Ifv 21 53 and w 81 20j find projv Then decompose v into two vectors...

Accounting
1.2K views

Required informatio (The following information applies to the questions displayed below.] Hudson Co. reports the...

Accounting
1.2K views

! Required information [The following information applies to the questions displayed below.] Trey has two...

Accounting
1.2K views

Cost Flow Relationships The following information is available for the first year of operations of...

Accounting
1.2K views

Transactions in a Job Order Cost System Five selected transactions for the current month are...