Newsome inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

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A: Companies often encourage their customers to pay early of their dues by introducing trade discounts.…

Q: alculate the APR and rEAR of non-free trade credit associated with credit terms of 3/25, net 85, and…

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Q: Gudenas Company makes a credit card sale to a customer for $500. The credit card sale has a grace…

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

Q: If a firm is given a trade credit terms of 2/15, net 30,  then the cost to the firm failing to take…

A: Trade credit terms of 2/15, net 30 means the firm gets a 2% discount if it pays within 15 days.…

Q: A discount electronics store advertises the following financing arrangement: “We don’t offer you…

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Q: GFB Co. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 30…

A: Free Trade credit refers to a type of financing wherein the buyer gets a credit period of…

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

A: Trade credit refers to the practice of businesses extending credit terms to their customers,…

Q: Steve wishes to buy Pound Sterling spot (at $1.6965) and sell Sterling forward for 180 days (at…

A: Spot rate=$1.6965Forward rate=$1.7399Period=180 daysCalculate forward premium or discount.

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: c. What is the effective annual rate of interest if Y pays on the due date rather than day 15? (Use…

A: Given, Invoice amount=$ 1,500 1/15, net 60, basis which means if company y pays within 15 days then…

Q: A buyer purchased an item worth P10,000 with no down payment at 0.85% per month for 24 months. What…

A: Using excel PMT function

Q: Round House Furniture offers credit to its customers at a rate of 1.15 percent per month. What is…

A: Effective rate of interest is the equivalent interest rate which is determined by considering the…

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

Q: What is the implicit borrowing rate being paid by customers who choose to defer payment for the…

A: Information Provided: Discount rate = 4.75% Amount due (time) = In 1 month

Q: Breeze Corp. is planning to change its credit terms from 4/10, n/30 to 5/15, n/35. Currently, 50% of…

A: Days sales outstanding refer to average number of days that an organisation or a company takes to…

Q: ACME​ Inc., has credit terms of​ 2/10 net 60. Customers should take the discount and pay in 10 days…

A:

Q: A supplier will give Shark Unibase Company a discount of 2% if an invoice is paid 60 days before its…

A: The credit policy of the supplier allows the company to avail a discount of 2% if the invoice is…

Q: A firm offers credit terms of 3/15, net 40. What is the effective annual rate on the credit extended…

A: The effective annual rate if customer foregoes discount = { 1+ [ discount rate/ ( 1 - discount rate)…

Q: PLEASE SHOW ALL WORK For terms of 8/10, n/60 determine the annual rate you, in effect, pay the…

A: Credit terms = 8/10 , n/60 means if payment is made within 10 days then supplier will offer 8%…

Q: A company is offred trade credit terms of 3/15, net 30 days. If the firm does not take the discount,…

A: The term 2/15, net 30 days means customer will get 3% discount if he pay within 15 days but here…

Q: Live Forever Life Insurance Company is selling a perpetuity contract that pays $2,0 monthly. The…

A: Effective rate is rate after considering the impact of compounding on interest rate.Here,monthly…

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: 4. Estrada V. Escritor sells on terms 3/10, net 30. Total sales for the year are ₱2,539,130.  Forty…

A: Accounts receivables are those customer accounts to whom business has made credit sales on account…

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: Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: Compound = n = Monthly = 12Annual Percentage Rate = APR = 19%

Q: ms of sale of 3/25, net 50. Calculate the effective annual rate. a-1. Calculate the effective…

A: Ans a)Given Payment terms 3/25, net 50Periodic Rate=Discount%/(1-Discount%)Periodic rate…

Q: A store will give you a 5.00% discount on the cost of your purchase if you pay cash today.…

A: Calculation of the implicit borrowing rate being paid by customers: Let's assume that the cost of…

Q: The annual interest rate on a credit card is ​17.99%. If a payment of ​$400.00 is made each​ month,…

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Q: When customers purchase goods on account, Spitz Manufacturing offers them a 2% reduction in the…

A: The objective of the question is to identify the correct accounting term for the scenario where…

Q: Compute the cost of not taking the cash discount

A: Information Provided: Discount % = 2.5% Due Date = 50 Discount Period = 14

Q: Calculate the nominal annual cost of no free trade credit under each of the following terms. Assume…

A: Note: As per our guidelines, we can only solve up to 3 subparts. Please post other parts separately.

Q: A local store charges 1½% each month on the unpaid balance for its charge account. What nominal…

A: Interest is an additional amount which is received over the deposited amount. At maturity, depositor…

Q: Fellen Inc, borrowed $150,000.00 at 3.15% for 100 days. The company paid $30,000.00 on day 30 and…

A: Amount after 30 days, say A1 = 150000[1 + (30 x 0.0315/360)] = 150394   Amount paid back after 30…

Q: 8. Suppose that the balance of a certain credit card is P43,744.53. The credit card company charges…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…