On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? * 104% 2.04% 109% 10% 1.09% On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? * 1.09% 2.04% 109% 10% 104%

On a 365-day basis, what is the rate per period of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? * 104% 2.04% 109% 10% 1.09% On a 365-day basis, what is the effective annual rate of using trade credit if terms are 2/10, net 30, and payment is made on the twentieth day? * 1.09% 2.04% 109% 10% 104%

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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60 eBook Calculate the APR and rEAR of non-free trade credit associated with credit terms of 2/20, net 50, and 1.5/30, net 50, assuming that customers who do not take the discount a. 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. APR TEAR Credit terms of 2/20, net 50 APR TEAR b. delay payment until 10 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. % % 2/20, net 50 1.5/30, net 50 Credit terms of % % % 1.5/30, net 50 % % Check My Work (2 remaining)
From the payment terms, 2/15, n/30, the discount period is ___________. a. 17 days b. 15 days c. 30 days d. 2 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%
An invoice dated January 25 with terms 2/10 -20 X. Find the final discount rate and the next payment date. The net payment date is 20 days after the final discount date. Assume it is not a leap year final dicount- net payment-
Saved The rates offered by a credit union for its non-redeemable 90- to 365-day GICs are shown in the following table: Deposit Amount $10,000 to $24,999 Rate 2.5% $25,000 to $59,999 $60,000 to $99,999 3.0% 3.2% Early redemption is permitted but will result in the rate being reduced to 1.75%. How much more interest will a 91-day $20,000 term deposit earn if it is held until maturity than if it is redeemed after 80 days? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.) Extra interest earned $ SA
An investment of $80,000 is expected to generate a net annual income of $27,000 for 5 years. If the study period is 20 years, and assuming this alternative will be repeated over the study period, what is the present worth of this investment if MARR is 11%? O a. $5,354 O b. $21,418 O c. $135,010 O d. $42,639 O e. $19,789
so.4 A credit card has a $730 balance and a 18.44% annual percentage rate the minimum required monthly payment is 2.83% of the balance estimate the credit card balance after 54 payments.
How much free trade credit does stargazer earn on average per year?
K The annual interest rate on a credit card is 13.99%. If the minimum payment of $20 is made each month, how many months will it take to pay off an unpaid balance of $946.17? Assume that no new purchases are made with the credit card.
11.2 Amount due at maturity: 2,900 Discount rate: 6 ¼ Time: 180 days Maturity Value (MV) = 2900 Discount Rate (r)=6 1/4 Time (n) = 180 days What is the Bank Discount and Proceeds
What interest comp. monthly is equivalent to an interest rate of 16.3% comp. quarterly?
None

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