High Time's suppliers tend to offer generous terms of trade credit 12/30, n902, but High Time can

Question:

High Time's suppliers tend to offer generous terms of trade credit 12/30, n902, but High Time can also issue commercial paper, receive
$0.978, and repay $1.00 at the end of 60 days. What are the rates offered by the two alternatives? What would be the impact if High Time's suppliers changed the terms to n30?
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...