Compute the approximate annual interest cost of not taking a discount using the following scenarios. What conclusion can be drawn from the calculations?

Trade Credit Discount – Compute the approximate annual 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

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