Calculate the annualized cost of the trade credit terms

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Reference no: EM131882601

1. Calculate the annualized cost of the trade credit terms of 2?/10?, net 75 when payment is made on the net due date? (assume a? 365-day year). The annualized cost of the trade credit terms of 2?/10?, net 75 is ?%.

2. If a firm buys on trade credit terms of 5?/10?, net 30 and decides to forgo the trade credit discount and pay on the net? day, what is the annualized cost of forgoing the discount? (assume a? 365-day year)? The annualized cost of the trade credit terms of 5?/10?, net 30 is ?%. ?(Round to two decimal? places.

Reference no: EM131882601

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