Question 180602
:
whats that statement about going with your first answer...lol
:
Discounted amount /(Discounted price/100) X 360/N =
     Effective annual interest rate
:
where 360 = days in the fiscal year, and N = the number of days between the discount date and the final payment deadline.
:
(3/(97/100))*360/20=.0309278 *18=.5567(100)=55.67% or 55.7%
:
1/10 net 30 = 18.2% 
1/10 net 45 = 10.4% 
1/10 net 60 = 7.3% 
2/10 net 30 = 36.7% 
2/10 net 60 = 14.7% 
2/20 net 90 = 10.5% 
3/10 net 30 = 55.7% 
3/10 net 60 = 22.3% 
3/20 net 90 = 15.9%