Problem 16-07
Cost of Trade Credit
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.
- 1/15, net 25. Round your answer to two decimal places.
%
- 2/10, net 55. Round your answer to two decimal places.
%
- 3/10, net 55. Round your answer to two decimal places.
%
- 2/10, net 50. Round your answer to two decimal places.
%
- 2/15, net 40. Round your answer to two decimal places.
%
