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What is the approximate, or “nominal,” cost of trade credit as an annual rate?

05 / 03 / 2018 Assignment

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If Jolly Joe’s buys $100 worth of supplies on credit with terms 2/15 n30 and pays the bill on the 30th day after the purchase:

a. What is the approximate, or “nominal,” cost of trade credit as an annual rate?

b. What is the exact cost of trade credit as an annual rate?


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