Assume the credit terms offered to your firm by your suppliers are 2​/20​, net 40. Calculate the cost of the trade credit if your firm does not take the discount and pays on day 40. ​(Hint: Use a​ 365-day year.)

5) According to a recent WalletHub report, the average credit card balance is $10,848 per American household, at an average 22.75% APR. How long will it take for a credit card balance of $10,848 to be paid off with monthly $40 minimum payments? How much interest will the credit card debt cost?

Which is correct ?

FINCORP has two debtors who each make a $10, 000 purchase. Debtor 1 pays their account in 10 days, while debtor 2 pays in 30 days.    a)     In simple terms, what nominal annual interest rate is debtor 2 incurring for the benefit of delaying payment?   Note: base your answer on the following logic. If a borrower pays 3% for a 30-day loan, we could express the nominal annual rate as roughly 36.5% i.e 3% x 365/30 = 36.5%   that payment is due within 30 days but debtors will receive a 5 percent discount if they pay within 14 days.   I'm quite unsure if that 5% as it is a discount, is handy or the steps to calculate the nominal interest rate

K Suppose that on January 1 you have a balance of $2500 on a credit card whose APR is 13%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1. a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) b. The total paid since January 1 is $ (Use the answer from part (a) to find this answer. Round to the nearest cent as needed.) c. The percentage of the total paid that is interest is %. (Use the answer from part (b) to find this answer. Round to one decimal place as needed.)

If your supplier offers 3/5 net 28, what is the implied interestrate if you choose to forgo the discount and pay on day 28?

Question Help ▼ Credit terms. As manager of Fly-by-Night Airlines, you decide to allow customers 90 days to pay their bills. To encourage early payment, though, you allow them to reduce their bills by 2.1% if they pay within the first 23 days. At what implied effective annual interest rate are you loaning money to your customers? What if you extend the discount to 77 days and allow full payment up to 180 days? At what implied effective annual interest rate are you loaning money to your customers? 1 % (Round to two decimal places)

When customers purchase goods on account, Spitz Manufacturing offers them a 2% reduction in the amount owed if they pay within 10 days. This is an example of a:   Multiple Choice   Sales return.   Sales discount.   Sales allowance.   Bad debt.

You have just purchased new goods worth 100,000 EUR from your supplier. Your supplier offers you to pay within 35 days. If you pay within the first 8 days, you get a discount of 1.2%. When would you pay? Why? What is the effective interest rate? Under which circumstances would you take the trade credit?

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the customer must pay the bill within 10 days. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter.