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what the annual yield is for a 2% 10 net 30 discount

Can anyone tell me what the annual yield is for a 2% 10 net 30 discount?

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Can anyone tell me what the annual yield is for a 2% 10 net 30 discount?

A company offers payment terms of 3/15, net 45. What is the cost of not paying within the discount period?

Assume that 1 year is equal 360 days.

Nominal annual cost = Discount Percent x 360 days
100 - Discount Percent Days credit is outstanding - Discount period

= 2 x 360
100 - 2 30 - 10

= 2 x 360
98 20

= 36.73%

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