(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 2/5, net 60 b. 4/15, net 30 c. 3/10, net 75 d. 4/15, net 60 a. When payment is made on the net due date, the APR of the credit terms of 2/5, net 60 is%. (Round to two decimal places.)

(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 2/5, net 60 b. 4/15, net 30 c. 3/10, net 75 d. 4/15, net 60 a. When payment is made on the net due date, the APR of the credit terms of 2/5, net 60 is%. (Round to two decimal places.)

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

Section: Chapter Questions

Problem 1PS

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Similar questions

The major supplier of SS Corp. offers credit terms of 2/10, n / 35 What is the net benefit (in rate or percent) of paying on the 35th day instead of obtained a loan that would cost SS 9% interest per year. Use 360 days and use the compounded annual effective cost.
consider account APR of 4.6% find APY and daily compounding. Comment on how changing the compounding period affects the annual yield. Question content area bottom Part 1 When interest is compounded quarterly, the APY is enter your response here%. (Do not round until the final answer. Then round to two decimal places as needed.)
The major supplier of SS Corp. offers credit terms of 12/10, n/35. What is the net benefit (in rate or percent) of paying on the 35th day instead of obtained a loan that would cost SS 8% interest per year. Use 360 days and use the compounded annual effective cost.
5
Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) Monthly Payment Number of Finance Amount Financed APR Payments Charge $18,100 72 $426.08 $ 12577.76 %
Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) AmountFinanced Number ofPayments MonthlyPayment FinanceCharge APR $18,300 72 $424.08 $ %
Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using the APR formula. (Round dollar amounts to the nearest cent and percentages to one decimal place.) Amount Number of Financed Payments $18,500 72 Monthly Payment $424.08 $ tA Finance Charge APR %
(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 4/5, net 60 b. 2/15, net 45 c. 4/10, net 60 d. 2/15, net 60 C a. When payment is made on the net due date, the APR of the credit terms of 4/5, net 60 is %. (Round to two decimal places.)
5. A firm offers terms 3/15, net/60. Calculate the Annual Percentage Rate (APR) and Annual Percentage Rate (APY) is for each of the scenario below if: a) Discount is changed by 4 percent. b) Credit period is decreased to 45 days. c) New APR of the firm if the discount period is increased by 5 days.
What is the effective annual cost of credit terms of 3/15 net 30, if the firm stretches. the accounts payable to 60 days? A) 28.03% B) 1.7% OC) 12.65% OD) 3.35%
(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 3/5, net 30 b. 2/15, net 45 c. 3/15, net 60 d. 4/10, net
Given an Annual Percentage Rate (APR) of 0.072 with quarterly compounding, the equivalent interest rate for effective annual rate is ____%. Instruction: Round to three decimal places.

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