What is your effective annual interest rate for this credit

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Reference no: EM133332124

Question: You place an order for 400 units of inventory at a unit price of $125. The supplier offers terms of 1/10, net 30. A. How long do you have to pay before the account is overdue? If you take the full period, how much would you remit? B. What is the discount being offered? How quickly must you pay to get the discount? If you do take the discount, how much should you remit? C. If you don't take the discount, how much interest (in dollars) are you paying for this trade implicitly? How many days' credit are you receiving? What is your effective annual interest rate for this credit?

Reference no: EM133332124

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