Blossom Company purchased merchandise with an invoice price of $3400 and credit terms of 2/8, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?
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Blossom Company purchased merchandise with an invoice price of $3400 and credit terms of 2/8, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?
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- Kingbird, Inc. purchased merchandise with an invoice price of $3600 and credit terms of 3/12, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms? 40% 3% 6% 60%A company received in payment for the merchandise sold an interest bearing note with a face amount of 100,000, an annual interest rate of 12%, and a term of 6 months. The company sold this note to bank, at discount rate of 15%, when the note had 90 days remaining to maturity. How much interest expense should the company report as a result of discounting, assuming the discounting is accounted for as a secured borrowing?If a company purchases merchandise on terms of 2.7/10, n/30, the cash discount available (assuming a 360-day year) is equivalent to an effective annual interest rate of
- Your company has been offered credit terms on its purchases of 4/30, net 90days. What will be the nominal annual cost of trade credit if your companypays on the 35th day after receiving the invoice? (Assume a 365-day year.) Show your complete solution.Ammer Products has an average accounts payable balance of P850,000 and its annual net credit purchases is P8,750,000. Assume there are 365 days per year. What is Ammer’s payables deferral period?A payday loan company charges a $40 fee for a $450 payday loan that will be repaid in 11 days using ordinary simple interest.Treating the fee as interest paid, what is the equivalent annual interest rate?
- A business issued a 45-day, 6% note for $210,000 to a creditor. Principal and interest are payable at maturity. How is maturity value calculated in this case? What is the maturity value of the note?Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 19.00%, with interest paid monthly, what is the card's EFF%? a.18.58% b. 19.52% с. 20.75% d. 21.94% e. 22.65%A credit card is advertised with an annual percentage rate (APR) of 24%. The advert also states that interest on the credit card is calculated quarterly. a) Using the information above, explain the difference between the APR and the effective annual rate (EAR).
- a. A Visa credit card issued through Frost Bank carries an interest rate of 1% per month on the unpaid balance. Calculate the effective rate per semiannualand annual periods.b. If the card’s interest rate is stated as 3.5% per quarter, find the effectivesemiannual and annual rates.American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 17.00%, with interest paid monthly, what is the card's EFF%? Select the correct answer. a. 18.39% b. 17.29% c. 15.09% d. 16.19% e. 19.49%> On August 1, Batson Company issued a 60-day note with a face amount of $75,600 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest computations.) a. Determine the proceeds of the note, assuming the note carries an interest rate of 12%. $ b. Determine the proceeds of the note, assuming the note is discounted at 12%. ?