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    Cost of giving Cash Discount

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    Tangston Mining was extended credit terms ov 3/15 net 30 EOM. The cost of giving up the cash discount, assuming payment would be made on the last day of the credit period is:

    b) 16.56%,
    d) 37.12%.

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    Solution Preview


    If purchases are made before 25 th of one month,
    3/15 net 30 EOM means

    3% discount is offered if paid on or ...

    Solution Summary

    Solution describes the steps to find out the cost of giving up a cash discount.