Suppose a firm purchases goods on credit terms of 3/10, net 15, and the firm always takes discounts. The cost of using the funds for six days is:

Question

Quizplus · Accepted Answer

If the firm always takes the discount, the cost of using the funds for the six days between the discount period (10 days) and the net period (15 days) is effectively 0%, as the firm pays within the discount period and incurs no additional cost.

Suppose a Firm Purchases Goods on Credit Terms of 3/10