A buyer borrows money at 7% interest to pay a $9400 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer's net savings for these two transactions? (Assume a 360 day year.) $58.71 $130.19 OSO

A buyer borrows money at 7% interest to pay a $9400 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer's net savings for these two transactions? (Assume a 360 day year.) $58.71 $130.19 OSO

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Question

minesh

A buyer borrows money at 7% interest to pay a $9400 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is
repaid on the 30th day of the invoice. What is the buyer's net savings for these two transactions? (Assume a 360 day year.)
$58.71
$130.19
OSO

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