Assume you skip the discount and pay at the end of the net period for the...

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Assume you skip the discount and pay at the end of the net period for the...

Assume you skip the discount and pay at the end of the net period for the following credit terms: 1/15, net 40. Calculate the APY for the trade credit.

Group of answer choices

about 14.74%

about 15.80%

about 24.08%.

about 27.71%

business finance

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Answer 1

Answer #1

B. about 15.80%

APY for the trade credit = [1 + (1/99)]^{[365 / (40 -
15)]} - 1

APY for the trade credit = 0.1580 or 15.80%

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Answer 2

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