What is the effective rate

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Q1. What is the effective rate of a 15% discounted loan for 90 days, P200,000, with 10% compensating balance?  Assume 360 days per year.

Q2. Your firm buys on credit terms of 2/10, net 45, and it always pays on Day 45. If you calculate that this policy effectively costs your firm P157,500 each year, what is the firm's average accounts payable balance?

Q3. ABC Company has an inventory order quantity of 10,000 units and a safety stock of 2,000 units. The cost per unit of inventory is P5, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the company is?

Reference no: EM133188355

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