Question

If a firm buys on trade credit terms of 1/10, net 45 decides to forgo the trade credit discount and pay on the net day, what is the annualized cost of forgoing the discount (assume a 360-day year)?
The annualized cost of the trade credit terms of 1/10, net 45 is ?%. (round to two decimal places.)

Answer 1

the annualized cost of the trade credit terms of 5/10, net 75 is ___%

Answer 2

18%