You place an order for 470 units of inventory at a unit price of $175. The supplier offers terms of 2/15, net 90. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-1. What is the discount being offered?
You place an order for 470 units of inventory at a unit price of $175. The supplier offers terms of 2/15, net 90. a-1. How long do you have to pay before the account is overdue? a-2. If you take the full period, how much should you remit? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b-1. What is the discount being offered?
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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Question
![You place an order for 470 units of inventory at a unit price of $175. The supplier offers
terms of 2/15, net 90.
a-1. How long do you have to pay before the account is overdue?
a-2. If you take the full period, how much should you remit? (Do not round intermediate
calculations and round your answer to the nearest whole number, e.g., 32.)
b-1. What is the discount being offered?
b-2. How quickly must you pay to get the discount?
b-3. If you do take the discount, how much should you remit? (Do not round
intermediate calculations and round your answer to the nearest whole number,
e.g., 32.)
c-1. If you don't take the discount, how much interest are you paying implicitly? (Do not
round intermediate calculations and round your answer to the nearest whole
number, e.g., 32.)
c-2. How many days' credit are you receiving? (Do not round intermediate calculations
and round your answer to the nearest whole number, e.g., 32.)
a-1. Days until overdue
a-2. Remittance
b-1. Discount offered
b-2. Number of days
b-3. Remittance
c-1. Implicit interest
c-2. Days' credit
days
%
days
days](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2F4ff77725-6569-48d6-b7e3-4e331be41354%2Fyyy0sa_processed.png&w=3840&q=75)
Transcribed Image Text:You place an order for 470 units of inventory at a unit price of $175. The supplier offers
terms of 2/15, net 90.
a-1. How long do you have to pay before the account is overdue?
a-2. If you take the full period, how much should you remit? (Do not round intermediate
calculations and round your answer to the nearest whole number, e.g., 32.)
b-1. What is the discount being offered?
b-2. How quickly must you pay to get the discount?
b-3. If you do take the discount, how much should you remit? (Do not round
intermediate calculations and round your answer to the nearest whole number,
e.g., 32.)
c-1. If you don't take the discount, how much interest are you paying implicitly? (Do not
round intermediate calculations and round your answer to the nearest whole
number, e.g., 32.)
c-2. How many days' credit are you receiving? (Do not round intermediate calculations
and round your answer to the nearest whole number, e.g., 32.)
a-1. Days until overdue
a-2. Remittance
b-1. Discount offered
b-2. Number of days
b-3. Remittance
c-1. Implicit interest
c-2. Days' credit
days
%
days
days
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Follow-up Question
![a-1. Days until overdue
a-2. Remittance
b-1. Discount offered
b-2. Number of days
b-3. Remittance
c-1. Implicit interest
c-2. Days' credit
$
90 days
82,250
2%
days
days](https://content.bartleby.com/qna-images/question/f00761e5-6ea2-4b64-9c87-d0591240e351/54bad17d-3249-4b5d-a9dd-982e5d7f855c/gmxjljc_thumbnail.png)
Transcribed Image Text:a-1. Days until overdue
a-2. Remittance
b-1. Discount offered
b-2. Number of days
b-3. Remittance
c-1. Implicit interest
c-2. Days' credit
$
90 days
82,250
2%
days
days
Solution
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