The D.J. Brothers Corporation needs to raise Ks. store. Brothers buys from its suppliers on terms of 3/10, net 90, and it currently pays on the 10th day an takes discounts. However, it could forgo the discounts, pay on the 90th day, and thereby obtain th needed Rs. 500,000 in the form of costly trade credit. What is the effective annual interest rate of th trade credit?

please quickluy , thanks  27. Caterpillar purchased merchandise from Alpha echnologies as follows: Invoice date: March 12th Invoice Amount: $4,000 Terms: 2/10, n/30 If we assume an annual interest rage of 6% and a 360-day year. And Caterpillar has to borrow money for the remaining 20 days of the credit period. How much are the savings from taking the discount? A.19.6 B.66.93 C.13.07 D.6.67

(Related to Checkpoint 18.2) (Evaluating trade credit discounts) If a firm buys on trade credit terms of 5/15, net 90 and decides to forgo the trade credit discount and pay on the net day, what is the annualized cost of forgoing the discount (assume a 365-day year)? The annualized cost of the trade credit terms of 5/15, net 90 is %. (Round to two decimal places.)

The Patel Company has several financial issues to solve. As the company’s Financial Analyst you have been asked to answer the following 2 questions:   Their bank will lend them $100,000 for 90 days at a cost of $1,200 interest. What is the company’s effective annual rate? A major supplier has granted credit terms of 1/10 N120. Assuming the company can borrow any amount of money at the rate you have calculated above (in part 1), should the company take the discount? (Your answer must be supported with a calculation of the cost of not taking the discount – using either simple or effective annual rate)