Syntech is offered credit terms of 2/10, net 40, but decides to forego taking the cash discount and pays on the 45th day. What is Syntech's cost of foregoing the cash discount? [AFC=(Interest Paid/usable funds)(365/maturity(days)]
The four answers that I have are one of the following:
d. none of the above
If Syntech takes the cash discount, it can pay 2% less.
Discount rate is d = 2%
Maturity days = ...
The cost of foregoing a cash discount is determined. The response received a rating of "5" from the student who posted the question.