How many extra days of credit can y receive

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Company X sells on a 5/11, net 57, basis. Customer Y buys goods with an invoice of $930.

Question 1: How much can Y deduct from the bill if it pays on day 11?

Question 2: How many extra days of credit can Y receive if it passes up the cash discount?

Question 3: What is the effective annual rate of interest if Y pays on the due date rather than day 11?

Reference no: EM132495361

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