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How much can company y deduct from the bill

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Reference no: EM131640242

Company X sells on a 1/20 net 60 basis. Company Y buys goods with an invoice of $1500

a) How much can company Y deduct from the bill if it pays on day 20?

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

c) What is the effective annual rate of interest if Y pays on the due date rather than day 20?

Reference no: EM131640242

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