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3 years ago

Suppose one of the suppliers to Trinity Health System offers terms of 3/15, net 45.

Business

1 answer:

Stella [2.4K]3 years ago

8 0

Answer:

avail the customer discount = 15% or pay full amount within = 45 days

Cost of Trade Credit = 44.12 %

Explanation:

given data

terms = 3/15

net = 45.

solution

as here credit term of 3/15, net 45

Trinity Health pay within = 15 days of purchase

to avail the customer discount = 15% or pay full amount within = 45 days

and

as net day for payment = 45 day

so for the calculation of cost of trade credit, it is assume that payment is actual made on 45th day

Cost of Trade Credit will be

Cost of Trade Credit = $(1+(\frac{0.03}{1-0.03})^{\frac{360}{45-15}}) - 1$

Cost of Trade Credit = 0.4412

Cost of Trade Credit = 44.12 %

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11.51%

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3 years ago

Suppose that Greece and Sweden both produce oil and stained glass. Greece's opportunity cost of producing a pane of stained glas

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Explanation:

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3 years ago

A generation ago, ketchup was an essential element of every American pantry and salsa was a relatively unknown product. The popu

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P: Political Factors influencing organization's performance.

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4 years ago

Assume you graduate from college with $26 comma 000 in student loans. If your interest rate is fixed at 4.70% APR with monthly

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Answer:

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Explanation:

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Data provided in the question

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3 years ago

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Answer:

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3 years ago