Find the effective annual rate of the following credit? terms: a.2.3?% discount if paid within 88 days...

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Finance

Find the effective annual rate of the following credit?terms:
a.2.3?% discount if paid within 88 days or net within 30days
b.1.1?% discount if paid within 35 days or net within 60days
c.0.4?% discount if paid within 14 days or net within 45days
d.0.8?% discount if paid within 23 days or net within 30days
What is the effective annual rate of a 2.3?% discount if paidwithin 88 days or net within 30 ?days?

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Answer a The formula to calculate the effective annual interest rate in credit terms offered is as under effective annual interest rate Discount 1Discount x 365Full allowed payment days Discount days Discount 23 Full allowed payment days 88 Discount days 30 effective annual interest rate 002310023 x 36588 30 effective annual interest rate See Answer

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Find the effective annual rate of the following credit?terms:a.2.3?% discount if paid within 88 days or net within 30daysb.1.1?% discount if paid within 35 days or net within 60daysc.0.4?% discount if paid within 14 days or net within 45daysd.0.8?% discount if paid within 23 days or net within 30daysWhat is the effective annual rate of a 2.3?% discount if paidwithin 88 days or net within 30 ?days?