A supplier offers your firm a 2% discount if you pay your bill within 10 days of the invoice. Otherwise, the full balance is due in 40 days. You choose to use the trade credit, but you delay
Your payment until 60 days after receiving the invoice. What is the effective annual cost to you
Of this arrangement? Assume a 365-day year, and round your answer to the nearest tenth of a
Percent.

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The Answer of A supplier offers your firm a 2% discount if you pay your bill within 10 days of the invoice. Otherwise, the full balance is due in 40 days. You choose to use the trade credit, but you delay
Your payment until 60 days after receiving the invoice. What is the effective annual cost to you
Of this arrangement? Assume a 365-day year, and round your answer to the nearest tenth of a
Percent.

A Supplier Offers Your Firm a 2% Discount If You