How long do you have to pay before the account is overdue, Financial Management

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How long do you have to pay before the account is overdue

You place an order for 2,400 units of Good X at a unit price of $61. The supplier offers terms of 1/20, net 50.

a. How long do you have to pay before the account is overdue 50 days.

If you take the full period, how much should you remit 146400

b. What is the discount being offered 1%

How quickly must you pay to get the discount (in days)

If you do take the discount, how much should you remit?

c. If you don’t take the discount, how much interest are you paying implicitly?

How many days’ credit are you receiving?

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Financial Management: How long do you have to pay before the account is overdue

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