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How much can company y deduct

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Reference no: EM132248349

Company X sells on a 1/15, net 60, basis. Company Y buys goods with an invoice of $1,500.

How much can company Y deduct from the bill if it pays on day 15?

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

What is the effective annual rate of interest if Y pays on the due date rather than day 15?

Reference no: EM132248349

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