Calculate the nominal annual cost of non free trade credit


Calculate the nominal annual cost of non free trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date.

a. 1/15, net 20.

b. 2/10, net 60.

c. 3/10, net 45.

d. 2/10, net 45.

e. 2/15, net 40.

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Finance Basics: Calculate the nominal annual cost of non free trade credit
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