a. If a firm buys under terms of 2/15, net 55, but actually pays on the...

 

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a. If a firm buys under terms of 2/15, net 55, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. % b. Does it receive more or less credit than it would if it paid within 15 days? a. If a firm buys under terms of 2/15, net 55, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. % b. Does it receive more or less credit than it would if it paid within 15 days?

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Answer a To calculate the nominal cost of nonfree trade credit we need to consider the discount and ... View the full answer