document.write( "Question 180602This question is from textbook Foundations of Finance
\n" ); document.write( ": I got 55.7% the first time and 45.4% the other way, please help:
\n" ); document.write( "The effective annula cost of not taking advantage of the 3/10,net 30 terms offered by a supplier is? (Use a 360 day year.)\r
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Algebra.Com's Answer #135367 by Mathtut(3670)\"\" \"About 
You can put this solution on YOUR website!
:
\n" ); document.write( "whats that statement about going with your first answer...lol
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\n" ); document.write( "Discounted amount /(Discounted price/100) X 360/N =
\n" ); document.write( " Effective annual interest rate
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\n" ); document.write( "where 360 = days in the fiscal year, and N = the number of days between the discount date and the final payment deadline.
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\n" ); document.write( "(3/(97/100))*360/20=.0309278 *18=.5567(100)=55.67% or 55.7%
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\n" ); document.write( "1/10 net 30 = 18.2%
\n" ); document.write( "1/10 net 45 = 10.4%
\n" ); document.write( "1/10 net 60 = 7.3%
\n" ); document.write( "2/10 net 30 = 36.7%
\n" ); document.write( "2/10 net 60 = 14.7%
\n" ); document.write( "2/20 net 90 = 10.5%
\n" ); document.write( "3/10 net 30 = 55.7%
\n" ); document.write( "3/10 net 60 = 22.3%
\n" ); document.write( "3/20 net 90 = 15.9% \n" ); document.write( "
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