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Approximate cost of giving up the discount

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Dream cakes bought some baking ingredients costing $12,500 on credit. The credit terms are 2.5/5 net 30 EOM. If dream cakes pays the invoice with in 5 days after the purchase, how much should it pay? What is the approximate cost of giving up the discount, when it pays 30 days after the invoice date?

Reference no: EM132409637

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