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Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount   pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %   delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %

Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount   pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %   delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.     Credit terms of   3/20, net 65 2.5/15, net 75 APR   %   % rEAR   %   %

Essentials Of Investments
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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Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount

 

  1. pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.

     

      Credit terms of
      3/20, net 65 2.5/15, net 75
    APR   %   %
    rEAR   %   %

     

  2. delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places.

     

      Credit terms of
      3/20, net 65 2.5/15, net 75
    APR   %   %
    rEAR   %   %
     
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