Company X sells on a 1/15, net 90, basis. Company Y buys goods with an invoice of $6,000.
a. How much can company Y deduct from the bill if it pays on day 15?
b. How many extra days of credit can company Y receive if it passes up the cash discount?
c. What is the effective annual rate of interest if Y pays on the due date rather than day 15?
a. Company Y can deduct from the bill if it pays on day 15 =... View the full answer