Wish Chips issues a $5000 invoice marked '3/10, net 30'. How much will Wish be owed if the client pays in 7 days? What is the effective annual interest rate on funds if the client pays in 25 days? 8. Why is trade credit so useful as a funding source for business?

Answer rating: 100% (QA)

1 Calculation for Amount Owed if Paid in 7 days If the client pays in 7 days they can take advantage of the 3 discount offered for early payment There... View the full answer