Explore BrainMass

Explore BrainMass

    Cost of not taking the cash discount

    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 June 3, 2020, 8:22 pm ad1c9bdddf

    Solution Summary

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