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Agata [3.3K]
2 years ago
6

McCallister's just purchased $16,500 worth of inventory. The terms of the sale were 1/15, net 45. What is the implicit interest?

Business
1 answer:
Greeley [361]2 years ago
3 0

The implicit interest based on the information given is $165.

<h3>How to calculate the interest?</h3>

It should be noted that the implicit interest is calculated as:

= Inventory worth × Discount rate

= $16500 × 1%

= $165

Therefore, the implicit interest based on the information given is $165.

Learn more about interest on:

brainly.com/question/24080432

#SPJ1

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Answer:

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Explanation:

In order to compute the number of orders place each year so that it can minimize the total inventory cost we need to use the economic order quantity formula i.e shown below:

The computation of the economic order quantity is shown below:

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