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Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
Edition 8ISBN: 978-1305585454Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
Edition 8ISBN: 978-1305585454 Exercise 47
Business Decision: Borrowing to Take Advantage of a Cash Discount.
You are the accountant for Suite Dreams, a retail furniture store. Recently, an order of sofas and chairs was received from a manufacturer with terms of 3/15, n/45. The order amounted to $230,000, and Suite Dreams can borrow money at 13% ordinary interest.
a. How much can be saved by borrowing the funds for 30 days to take advantage of the cash discount (Remember, Suite Dreams must borrow only the net amount due after the cash discount is taken.)
b. What would you recommend
You are the accountant for Suite Dreams, a retail furniture store. Recently, an order of sofas and chairs was received from a manufacturer with terms of 3/15, n/45. The order amounted to $230,000, and Suite Dreams can borrow money at 13% ordinary interest.
a. How much can be saved by borrowing the funds for 30 days to take advantage of the cash discount (Remember, Suite Dreams must borrow only the net amount due after the cash discount is taken.)
b. What would you recommend
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Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman
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