Explore BrainMass

### Explore BrainMass

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

Approximate Interest Rate = Discount % / (1-Discount %) x (365/Net period)

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 1/10 net 20 b. 1/10 net 30 c. 1/10 net 40 d. 1/10 net 50 e. 1/10 net 60

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 2/15 net 20 b. 2/15 net 30 c. 2/15 net 40 d. 2/15 net 50 e. 2/15 net 60

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 1/15 net 30 b. 1/10 net 30 c. 1/15 net 30 d. 1/20 net 30

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 2/5 net 30 b. 2/10 net 30 c. 2/15 net 30 d. 2/20 net 30

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 1/10 net 30 b. 2/10 net 30 c. 3/10 net 30 d. 4/10 net 30

Trade credit discount. Compute the annual approximate interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations? a. 1/15 net 30 b. 2/15 net 30 c. 2/15 net 30 d. 4/15 net 30.