What are Wholesaler As costs of credit

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Question -

I. Answer the following and explain elaboratively

1. Wholesaler A borrowed P100,000 from XYZ Bank. What are Wholesaler A's costs of credit? The bank's?

2. How are prices affected by the availability of amounts of credit?

3. What are the linkage enterprises and how will they benefit from the availability of large amounts of credit?

II. Answer the following with COMPUTATION AND EXPLANATION.

RB Mart obtained P50,000 worth of merchandise from MC Wholesalers based on terms of 2/10-N-30. The merchandise was invoiced on March 29, 2020, the discount period will end on April 9. On April 2, RB Mart's bank offered to give the owner an unsecured loan of P50,000 payable in one year at 18% per year, the interest will be paid at the end of the term. Should RB Mart get the loan and pay MC Wholesalers within the discount period?

Reference no: EM132956240

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