Fight Finance

Courses  Tags  Random  All  Recent  Scores

Scores
keithphw$6,001.61
Carolll$1,512.43
Zin$1,502.43
Visitor$1,268.61
Visitor$1,251.28
cuiting$1,239.70
Jade$1,225.80
Visitor$1,198.33
Skywalke...$1,070.00
mm11$1,050.33
ninalee$1,039.70
Visitor$1,024.70
Yuan$1,023.33
Visitor$996.00
Visitor$985.61
zy$959.70
victor$934.70
Emma Lu$930.00
Doris$889.70
Visitor$840.00
 

Question 24  implicit interest rate in wholesale credit, effective rate

A bathroom and plumbing supplies shop offers credit to its customers. Customers are given 60 days to pay for their goods, but if they pay within 7 days they will get a 2% discount.

What is the effective interest rate implicit in the discount being offered? Assume 365 days in a year and that all customers pay on either the 7th day or the 60th day. All rates given in this question are effective annual rates.




Copyright © 2014 Keith Woodward