How long do you have to pay before the account is overdue, Financial Management

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How long do you have to pay before the account is overdue

You place an order for 250 units of inventory at a unit price of $130. The supplier offers terms of 1/10, net 30.

a-1 How long do you have to pay before the account is overdue?

a-2 If you take the full period, how much should you remit?

b-1 What is the discount being offered? Discount offered?

b-2 How quickly must you pay to get the discount?

b-3 If you do take the discount, how much should you remit?

c-1 If you don’t take the discount, how much interest are you paying implicitly?

c-2 How many days’ credit are you receiving?

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Financial Management: How long do you have to pay before the account is overdue

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