Respuesta :
Answer:
The nominal annual percentage cost of its non-free trade credit, based on a 365-day year is 0.2795%
Explanation:
The computation of the nominal annual percentage is shown below:
= Discount rate ÷ (100 - discount rate) × ({Total number of days ÷ payable days} - discount days)
= 2% ÷ ( 100 - 2%) × (365 days ÷ 65 days - 15 days)
= 2% ÷ (98% × 7.3)
= 2% ÷ 7.154
= 0.2795%
The net purchase amount is irrelevant. hence, this part is ignored
The nominal annual percentage cost of non-free trade credit on purchases is 14.89%
What is trade credit?
Trade credit is a kind of discount provided to the debtors for getting instant or prompt payments from them.
Given values:
Discount rate: 2%
Total number of days: 365
Payment days: 65
Discount days: 15
Computation of annual percentage for not taking the credit:
[tex]\rm\ Annual \rm\ percentage = \frac{\rm\ Rate \rm\ of \rm\ discount}{100-\rm\ rate \rm\ of \rm\ discount} \times\ \frac{\rm\ Total\rm\ days}{Payment \rm\days-\rm\ Discount \rm\days} \\\rm\ Annual \rm\ percentage=\frac{2\%}{100-2\%} \times\ \frac{365}{65-15} \\\rm\ Annual \rm\ percentage=2.0408 \% \times\ 7.3 \ days\\\rm\ Annual \rm\ percentage=14.89\%[/tex]
Therefore, the annual percentage of not taking a discount on purchases is 14.89%.
Learn more about the trade credit in the related link:
https://brainly.com/question/15023349
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