A retailer owes a wholesaler $500,000 due in 45 days. If the payment is 15 days late,
Question:
If the payment is 15 days late, there is a 1% penalty charge. The retailer can get a 45-day certificate of deposit (CD) paying 6% or a 60-day certificate paying
7%. Is it better to take the 45-day certificate and pay on time or to take the 60-day certificate and pay late with the penalty?
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45 day note I 500000 006 45 360 37...View the full answer
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Related Book For 
Mathematical Applications for the Management Life and Social Sciences
ISBN: 978-1305108042
11th edition
Authors: Ronald J. Harshbarger, James J. Reynolds
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