A company is offering you terms for payment on an invoice


A company is offering you terms for payment on an invoice of $15,000 of "Discount 5% in 10 days Net 60 days." This means that you can either pay 95% of the amount due in 10 days or pay the entire amount in 60 days. What is the effective rate per year compounded yearly that you will be able to earn on the amount if you take the discount?

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Financial Management: A company is offering you terms for payment on an invoice
Reference No:- TGS02160744

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