Company X sells on a 1/15, net 90, basis. Company Y buys goods with an invoice...

 

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Company X sells on a 1/15, net 90, basis. Company Y buys goods with an invoice of $3,000. a. How much can company Y deduct from the bill if it pays on day 15? Note: Do not round intermediate calculations. b. How many extra days of credit can company Y receive if it passes up the cash discount? c. What is the effective annual rate of interest if y pays on the due date rather than day 15? Note: Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. a. Discount b. Number of days c. Effective annual rate $ 30 75 days % Company X sells on a 1/15, net 90, basis. Company Y buys goods with an invoice of $3,000. a. How much can company Y deduct from the bill if it pays on day 15? Note: Do not round intermediate calculations. b. How many extra days of credit can company Y receive if it passes up the cash discount? c. What is the effective annual rate of interest if y pays on the due date rather than day 15? Note: Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. a. Discount b. Number of days c. Effective annual rate $ 30 75 days %

Answer rating: 100% (QA)

a To calculate the discount that Company Y can deduct if it pays on day 15 you can use the formula D... View the full answer