What is effective annual rate of interest
Company X sells on a 1/20, net 90 basis, Customer Y buys good with an invoice of $2,500. What is the effective annual rate of interest if Y pays on the due date rather than day 20? What is Effective annual rate of interest% ?
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Bamboo You, Inc. This company manufactures bamboo picture frames that sell for $23 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 18 minutes to build, and the labor rate averages $9.00
E7-1 Carl Warren Tina Chester owns and operates Pinebush Print Co. During September, Pinebrush Print Co. incurred the following costs in acquiring two printing presses.
Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 8%, 9-month note. The entry made by Trust Company on January 1 to record the proceeds and issuance of the note.
Paymore products places orders for goods equal to 75% of its sales forecast in the next quarter. The sales forecasts for the next five quarters are as follows: Sales Forecase for Quarter in Comming Year.
he accounts receivable clerk for Wigs Plus prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 2009.
On January 25, Coot Company has $430,000 deposited with a local bank. On January 27, the company writes and mails checks of $38,000 and $78,000 to suppliers.
A firm offers terms of 3/35, net 50. Currently, two-thirds of all customers take advantage of the trade discount; the remainder pay bills at the due date.
The cost of production is $99. Locust sells its packages on terms of net 30 and estimates that about 8% of all orders will be uncollectible.
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