Company needs to raise 400000for one year to supply working


Company needs to raise $400,000for one year to supply working capital to a new store. Buts from supplier on terms 2/10 net 90and it's currently pay on tenth day. Forgo discount pay on 90th day and get the $400,000 needed to form costly trade credit. What is the effective annual interest rate of trade for this credit? Assume 365 days in calculations.

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Financial Management: Company needs to raise 400000for one year to supply working
Reference No:- TGS0984580

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