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    Cost of Trade Credit

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    Calculate the nominal cost of nonfree trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date.

    a. 1/15, net 20
    b. 2/10, net 60
    c. 3/10, net 45
    d. 2/10, net 45
    e. 2/15, net 40.

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