Question: Consider the credit terms 2 / 3 0 , Net 6 0 . While payment must be made within 6 0 days, the

Consider the credit terms "2/30, Net 60." While payment must be made within 60 days, the supplier offers a 2% discount if you pay within 30 days. Compute the (per annum) interest rate implied by these credit terms?
Correct answer:
27.42%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!