Determine what effective annual interest rate


The treasurer of a firm famous the many invoices were received with the following terms of payment: "2%- days, net 30 days." Thus, if the bill is paid within ten days of its date, he could deduct 2%. Or the full amount would be due 30 days from the invoice date. Assuming a 20-day compounding period, the 2% deduction for prompt payment is equivalent to determine what effective annual interest rate?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Determine what effective annual interest rate
Reference No:- TGS0872381

Expected delivery within 24 Hours