Your company has just bought a new industrial machine for $75 000 from a supplier that offered you credit terms of 2/10, Net 30. 

a. If you choose to pay on day 30, what is the effective annual rate of the trade credit? Answer in percentage form with two decimals (i.e. 34.55%, not 0.3455). % 

b. If you instead pay on day 50, what is the effective annual rate of the trade credit? Answer in percentage form with two decimals (i.e. 34.55%, not 0.3455). %

Answer rating: 100% (QA)

aThe effective annual rate of the trade credit is 8 11 To calculate the effec... View the full answer