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Calculate the cost of skipping the discount and paying at the end of the net period for each of the following credit terms

Calculate the cost of skipping the discount and paying at the end of the net period for each of the following credit terms
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Solution Guide / Answer Key:

FINANCE

A14. (Cost of trade credit) Calculate the cost of skipping the discount and paying at the end of the net period for each of the following credit terms. Calculate the APR and the APY.
a. 5/10, net 50
b. 3/15, net 30
c. 2/10, net 20

 

FILE: MS WORD

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