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# 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

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

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