Taking advantage of a 2/10, n/30 purchases discount is equal to a savings yearly rate of approximately

Name: Taking advantage of a 2/10, n/30 purchases discount is equal to a savings yearly rate of approximately
Brand: Quizplus
Rating: 4.9 (42 reviews)

Question

Quizplus · Accepted Answer

The 2/10, n/30 discount means a 2% discount if paid within 10 days. If not taken, the cost is the same as paying in 30 days. The effective interest rate for the 20-day period is 2%, which annualizes to approximately 36% (365/20 * 2%).

Taking Advantage of a 2/10, N/30 Purchases Discount Is Equal