Suppose you are offered trade credit term of 1.5/15, net 50. ( Calculate both the APR and APY of the cost of trade credit)Using the information what would be the APR cost if you "stretched" the payable and paid after 75 days. (Show work)© BrainMass Inc. brainmass.com June 3, 2020, 11:16 pm ad1c9bdddf
APR = [cash discount / (1 - cash discount)] x [ 360 days/ (days credit outstanding - discount period)]
[1.5% / (1 - ...
The solution examines trade credit terms and APR.