In exercise 13, Bernie is given terms of 4/15 n/30, and he pays by day 15. a.

Question:

In exercise 13, Bernie is given terms of 4/15 n/30, and he pays by day 15.
a. How much will he pay the manufacturer for the order of 110 bikes?
b. For how much will the manufacturer credit Bernie’s account?
c. If Bernie has a cash flow problem and waits until day 30 to pay the manufacturer, what is his effective rate of financing for the year?