If a company gives you discount terms of 2% in 5 days, Net 30, what is...
If a company gives you discount terms of 2% in 5 days, Net 30, what is the effective rate that you can earn if you take a discount on an invoice of $10,000? 2% in 5 days mean you can pay 98% of the invoice in 5 days, or 100% in 30 days.
Homework Answers
| Effective cost of trade credit = (1 + (discount % / (1 – discount %))^(365/days past discount) – 1 |
| Effective cost of trade credit=(1+(0.02/(1-0.02))^(365/(30-5))-1 |
| Effective cost of trade credit = 34.31 |
Add Answer to:
If a company gives you discount terms of 2% in 5 days, Net 30,
what is...
A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm...
A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2/10, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round...
A firm offers terms of 1.4/10, net 30. a. What effective annual interest rate does...
A firm offers terms of 1.4/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.4/10, net 30, and the customer does not take the discount? (Use 365...
Credit terms of 5/10, net 30 means that a cash discount of 5% can be taken...
Credit terms of 5/10, net 30 means that a cash discount of 5% can be taken if payment is made by _________________ or the full invoice must be paid by __________________ . 2 days, 30 days 2 days, 10 days 10 days, 30 days 30 days, 10 days
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
A firm offers terms of 1.4/10, net 60. a. What effective annual interest rate does the...
A firm offers terms of 1.4/10, net 60. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the terms are changed to 2.4/10, net 60, and the customer does not take the discount? (Use 365 days...
Coleman Company purchases inventory from Happy Pool Supplies on June 1. The sales terms on the...
Coleman Company purchases inventory from Happy Pool Supplies on June 1. The sales terms on the invoice from Happy Pool Supplies are 5/10, 1/30. What does this mean? What is Coleman's potential savings, if any? How much time does the company have to take advantage of these savings? due within 10 days. 5/10, n/30 means that Coleman Company will get a 5% discount if they pay the invoice within 10 days of the invoice date; otherwise, the full amount The...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. Interest of 10 percent will be charged if invoice is paid after two days. B. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Interest of 2 percent will be charged if the invoice is paid after...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. Interest of 10 percent will be charged if invoice is paid after two days. B. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Interest of 2 percent will be charged if the invoice is paid after...
A business offers credit terms of 2/15, n/30. These terms indicate that: A. the total amount...
A business offers credit terms of 2/15, n/30. These terms indicate that: A. the total amount of the invoice must be paid within 15 days of the invoice date B. the buyer can take a 2% discount if the bill is paid within 30 days of the invoice date C. a discount of 2% can be taken if the invoice is paid within 15 days of the invoice date D. no discount is offered for early payment
Cash Discount Review, Tu 41400 Chapter 8 and Distribution Finance Handy Rule: "30 days hath September. April June...
Cash Discount Review, Tu 41400 Chapter 8 and Distribution Finance Handy Rule: "30 days hath September. April June and November all the others have 31 expect February which has 28 and sometimes 29" (author unknown) 1. Calculate the cash discount offered and the amount paid as stated in the problems below: Item Invoice Amount Invoice Date Discount terms Date Pald Amount Pald a $1,790 1/10, n/30 3/1 3/10 $1,772.10 b. $7,194 2/10, n/30 3/28 4/17 $7,050 2. A distributor is...
A firm offers terms of 1/10, net 30. a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,...
Coleman Company purchases inventory from Happy Pool Supplies on June 1. The sales terms on the invoice from Happy Pool Supplies are 5/10, 1/30. What does this mean? What is Coleman's potential savings, if any? How much time does the company have to take advantage of these savings? due within 10 days. 5/10, n/30 means that Coleman Company will get a 5% discount if they pay the invoice within 10 days of the invoice date; otherwise, the full amount The...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. Interest of 10 percent will be charged if invoice is paid after two days. B. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Interest of 2 percent will be charged if the invoice is paid after...
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. Interest of 10 percent will be charged if invoice is paid after two days. B. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. Interest of 2 percent will be charged if the invoice is paid after...
Cash Discount Review, Tu 41400 Chapter 8 and Distribution Finance Handy Rule: "30 days hath September. April June and November all the others have 31 expect February which has 28 and sometimes 29" (author unknown) 1. Calculate the cash discount offered and the amount paid as stated in the problems below: Item Invoice Amount Invoice Date Discount terms Date Pald Amount Pald a $1,790 1/10, n/30 3/1 3/10 $1,772.10 b. $7,194 2/10, n/30 3/28 4/17 $7,050 2. A distributor is...
Most questions answered within 3 hours.
-
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 1 hour ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 1 hour ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 3 hours ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 4 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 4 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 4 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 5 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 5 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 5 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 5 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 5 hours ago -
Why are polymers not typically casted into products?
asked 6 hours ago