What effective annual interest rate does the firm earn

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A firm offers terms of 2.4/7, net 30.

a. What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual interest rate %

b. What effective annual interest rate does the firm earn if the terms are changed to 3.4/7, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual interest rate %

c. What effective annual interest rate does the firm earn if the terms are changed to 2.4/7, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual interest rate %

d. What effective annual interest rate does the firm earn if the terms are changed to 2.4/12, net 30, and the customer does not take the discount?

Reference no: EM13937868

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