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    Cost of cash discount

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    A company is offered trade credit terms of 3/15, net 45 days.
    The company does not take the discount, and instead pays after 67 days. What is the nominal annual Cost of not taking the discount? (Assume a 365-day year.)

    © BrainMass Inc. brainmass.com June 3, 2020, 8:12 pm ad1c9bdddf
    https://brainmass.com/business/cash/cost-of-cash-discount-127776

    Solution Summary

    The solution explains how to calculate the nominal annual cost of not taking the discount

    $2.19

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