Explore BrainMass

Explore BrainMass

    Cost of not taking the cash discount

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Acme offers its customers a cash discount of 4% if payment is made within 15 days, rather than its current net 45 policy. Assuming a 365-day year, what is the annual rate Acme is charging its customers who do not take the discount?

    © BrainMass Inc. brainmass.com March 4, 2021, 7:57 pm ad1c9bdddf

    Solution Summary

    The solution explains how to calculate the cost of not taking a cash discount.