Company x sells on a 215 net 90 basis company y buys goods, Ask an Expert

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Company X sells on a 2/15, net 90, basis. Company Y buys goods with an invoice of $3,500.

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? (Use 365 days in a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92752015

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