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Cost of Trade Credit

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October 6th, 2022

Calculate the nominal cost of nonfree trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date.

a. 1/15, net 20
b. 2/10, net 60
c. 3/10, net 45
d. 2/10, net 45
e. 2/15, net 40.

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