If you pay the bill on the 50th day after the purchase what, Finance Basics

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If you pay the bill on the 50th day after the purchase what

Suppose your firm buys $1,000 worth of supplies on credit with terms 3/15 n60.

a. If you pay the bill on the 14th day after the purchase, what is the cost of the trade credit you have used for the 14-day period?

b. If you pay the bill on the 50th day after the purchase, what is the cost of the trade credit you have used for the 35-day period after the discount period ended?

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