If jolly joersquos buys 100 worth of supplies on credit, Financial Management

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If jolly joersquos buys 100 worth of supplies on credit

If Jolly Joe’s buys $100 worth of supplies on credit with terms 3/10 n30 and pays the bill on the 28th day after the purchase:

a. What is the approximate, or “nominal,” cost of trade credit as an annual rate?

b. What is the exact cost of trade credit as an annual rate?

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Financial Management: If jolly joersquos buys 100 worth of supplies on credit

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Financial Management: If jolly joersquos buys 100 worth of supplies on credit

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