Nominal annual cost of trade credit
Problem:
Your company has been offered credit terms on its purchases of 4/30, net 90 days. What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Asuume a 365-day year.)
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What will be the nominal annual cost of trade credit if your company pays on the 35th day after receiving the invoice? (Asuume a 365-day year.)
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