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Question - Company X sells on a 1/15, net 60, basis. Company Y buys goods with an invoice of $3,500.
Required -
a. How much can company Y deduct from the bill if it pays on day 15? (Do not round intermediate calculations.)
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 15?
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