QUESTION 3 Chip N. Dale Lumber Company is not taking advantage of the trade discount offered...

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QUESTION 3 Chip N. Dale Lumber Company is not taking advantage of the trade discount offered by its suppliers, which stipulates a discount of 1% for payments made within 17 days of the invoice date, or payment of the full invoice amount 40 days after the invoice date. What annualized interest rate, expressed as an APR (i.e., not compounded), is Chip N. Dale implicitly paying by not taking the discount for early payment? Assume the year has 360 days. Write the answer as a percentage with 2 decimals; e.g., 23.45% (but don't write the % sign!). (Acceptable error = 0.50) QUESTION 3 Chip N. Dale Lumber Company is not taking advantage of the trade discount offered by its suppliers, which stipulates a discount of 1% for payments made within 17 days of the invoice date, or payment of the full invoice amount 40 days after the invoice date. What annualized interest rate, expressed as an APR (i.e., not compounded), is Chip N. Dale implicitly paying by not taking the discount for early payment? Assume the year has 360 days. Write the answer as a percentage with 2 decimals; e.g., 23.45% (but don't write the % sign!). (Acceptable error = 0.50)

Answer rating: 100% (QA)

To find the cost of not taking trade discount we will use the following ... View the full answer