Calculate the nominal annual cost of no free trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. a. 1/15, net 20 b. 2/10, net 60 c. 3/10, net 45 d. 2/10, net 45 e. 2/15, net 40

(Trade credit discounts) Determine the effective annualized cost of forgoing the trade credit discount on the following terms: a. 2/6, net 30 b. 2/7, net 45 c. 1/8, net 25 d. 5/9, net 80 e. 5/7, net 70 f. 3/7, net 60

Calla Lily Corp. purchases on terms of 2/8, net 45 days, does not accept discounts, and pays after 58 days. How much does the non-free trade credit cost in terms of effective annual percentage cost? (Incorporate a 365-day year)

8. The following information about Lapus Incorporation that borrows by pledging its receivables are as follows: Average balance of accounts receivable Annual receivables turnover (360/ACP) Administrative fee charged on all new receivables Interest rate on outstanding loans Percent of receivables accepted What is the effective cost of financing stated as an annual rate? a. 12.0% b. 14.0% c. 21.6% d. 24.0% P100,000 6x 2% 12% 80%