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    Cost of not taking the cash discount

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    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
    https://brainmass.com/business/cash/cost-taking-cash-discount-134728

    Solution Summary

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

    $2.19

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