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 isrepaid 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$130.19OSO

Here,The buyer has a $9400 invoice with terms 1/10,n/30.Also,The buyer is borrowing money at 7%…

Answered: A buyer borrows money at 7% interest to…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

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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