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Cost of Trade Credit Calculate the nominal annual cost of nonfee trade credit under each of...

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Finance

Cost of Trade Credit Calculate the nominal annual cost of nonfeetrade credit under each of the following terms. Assume that paymentis made either on the discount date or on the due date. 1/10 net20; 2/10 net 60; 3/10 net 45; 2/10 net 45; 2/10 net 40

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Nominal annual cost of nonfee trade credit The nominal annual cost of nonfee trade credit is calculated by using the following formula Nominal cost of credit Discount Rate 100 Discount Rate x 365 Days    See Answer
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Transcribed Image Text

Cost of Trade Credit Calculate the nominal annual cost of nonfeetrade credit under each of the following terms. Assume that paymentis made either on the discount date or on the due date. 1/10 net20; 2/10 net 60; 3/10 net 45; 2/10 net 45; 2/10 net 40

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