c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)   ???

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A: We need to use effective annual return (EAR) formula below.EAR =( 1 +Periodic interest rate)number…

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Q: What’s the equivalent interest rate to the terms 3/20, n/60? In other words, what is the effective…

A: Time Value of Money:  The term 3/20 means if the customer makes payment within 20 days he will enjoy…

Q: Suppose that on January 1 you have a balance of $2600 on a credit card whose APR is 13%, which you…

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Q: Friendly's Quick Loans, Inc., offers you $8.25 today but you must repay $10.45 when you get your…

A: Given: Particulars Amount Present value $8.25 Future value $10.45

Q: riendly’s Quick Loans, Inc., offers you $7.75 today but you must repay $9.85 when you get your…

A: Effective interest is the interest rate after considering the impact of compounding of interest and…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: When the benefits of compounding over time are taken into account, an effective annual interest rate…

Q: Company X sells on a 2/10, net 90, basis. Company Y buys goods with an invoice of $1,500. a. How…

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Q: a. What effective annual interest rate does the firm earn when a customer does not take the…

A: Companies give discount to the customers for early payment and that is cost to the company and that…

Q: A person borrows $3,000 on a bank credit card at a nominal rate of 18% per year, which is actually…

A: Annual Percentage Rate It  the total  interest paid  each year which is before consideration for the…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: The annual percentage rate(APR) is the interest rate (nominal rate) determined by the credit card…

Q: If your Visa credit card has an APR of 14.49%, compounded monthly and your current balance is…

A: APR is 14.49% Compounded monthly Current Balance is $425.69 Time period 1 year Minimum monthly…

Q: Assume the credit terms offered to your firm by your suppliers are 2/15, net 30 . Calculate the cost…

A: Discount % = 2% Credit Period = 30 daysDiscount Period = 15 daysNumber of day in a year = 365

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A: Effective annual rate is computed after taking into account all the compounding due in a year.…

Q: The original price of a Honda Shadow to the dealer was $17,045, but the dealer will pay only $16,335…

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Q: One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: supplier hands you an invoice for $47,000 with the terms 4/20, net 180. a. ) What is the effective…

A: Equivalent Annual Cost -Businesses can utilize Equivalent Annual Cost (EAC) as a crucial tool to…

Q: A firm offers terms of 1/10, net 40. a. What effective annual interest rate does the firm earn when…

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Q: You owe $1,853.42 on a credit card with a limit of $3,000.00 at a rate of 15.5% APR. You pay…

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Q: Newsome Inc. buys on terms of 4/10, net 45. It does not take the discount, and it generally pays…

A: Effective annual percentage = (1+[Discount rate/(1–Discount Rate)])^n– 1 Where n= No. of days in a…

Q: Bob receives an invoice for $1,400.00. The terms of the invoice are 5/14 net 60. If he doesn't pay…

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Q: Cost of not taking a cash discount %

A: The cost of not taking a cash discount represents the additional expense incurred by a company when…

Q: A store will give you a 1.75% discount on the cost of your purchase if you pay cash today.…

A: The concept of the time value of money states that the same amount of money is worth more today than…

Q: A store will give you a 2.75% discount on the cost of your purchase if you pay cash today.…

A: Given: Discount rate is 2.75%

Q: If a firm buys under terms of 3/15, net 30, but actually pays on the 20th day and still takes the…

A: Companies gives discount to the customers for early payments to customers but that is cost to…

Q: If a firm buys under terms of 1/15, net 40, but actually pays on the 20th day and still takes the…

A: 1/15, net 40 means that the supplier will give an additional discount of 1% to the buyer if the…

Q: A store will give you a 1.00% discount on the cost of your purchase if you pay cash today.…

A: Given information :Discount rate = 1%Time period for payment due = 1 month Purchase price (Assumed)…

Q: Company X sells on a 2/15, net 60, basis. Company Y buys goods with an invoice of $4,500.   a. How…

A: Credit sales refer to the sale of goods where the buyer pays after receiving the goods. It is very…

Q: ) If you make no payments and no additional purchases for one year, what will be the amount owed at…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Little Kimi Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of…

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A: Present Value (PV) = $4200 No. of years = 3 Interest Rate = 18% Monthly Compounding = 12 Interest…

Q: Ricky Ripov’s Pawn Shop charges an interest rate of 18.25 percent per month on loans to its…

A: APR (Annual Percentage Rate) and EAR (Effective Annual Rate) are two ways of measuring the cost of…