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Evaluating trade credit discounts

label Business & Finance
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schedule 0 Hours
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if a firm buys on trade credit terms of 3/15, net 90 anti-size to forgo the trade credit discount and pay on the  net day,  what is the annualized  cost of the foregoing the discount (assume a 360-day year)?

Apr 13th, 2015

ANSWER = 360/90*3=12% The annualized cost of the discount

Apr 13th, 2015

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Apr 13th, 2015
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Apr 13th, 2015
Jun 24th, 2017
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