You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35.
Requirement 1. How long do you have to pay before the account is overdue? (b) If you take the full period, how much should you remit?
Requirement 2: (a) What is the discount being offered? (b) How quickly must you pay to get the discount? c) If you do take the discount, how much should you remit?
Requirement 3: (a) If you don’t take the discount, how much interest are you paying implicitly? Implicit interest $ (b) How many days’ credit are you receiving?