7. Assume the trade credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit (effective annual rate) from day 5 until day 30 when you paid. 25.37% 55.94% 21.61% 29.30%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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7.
Assume the trade credit terms offered to your
firm by your suppliers are 3/5, Net 30. Calculate
the cost of the trade credit (effective annual
rate) from day 5 until day 30 when you paid.
25.37%
55.94%
21.61%
29.30%
Transcribed Image Text:7. Assume the trade credit terms offered to your firm by your suppliers are 3/5, Net 30. Calculate the cost of the trade credit (effective annual rate) from day 5 until day 30 when you paid. 25.37% 55.94% 21.61% 29.30%
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