Calculate v, d, a(2), d (12) , i (365), and δ under compound interest i = 6%. (Financial Mathematics)
Calculate v, d, a(2), d (12) , i (365), and δ under compound interest i = 6%. (Financial Mathematics)
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Ch20
A firm offers terms of 2.6/7, net 30. Solve for C and D
| 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 and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | 51.86 % |
| b. | What effective annual interest rate does the firm earn if the terms are changed to 3.6/7, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | 78.87 % |
| c. | What effective annual interest rate does the firm earn if the terms are changed to 2.6/7, net 45, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer 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 2.6/12, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | % |
ch20
| A firm offers terms of 2.6/7, net 30. Solve for C and D |
| 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 and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | 51.86 % |
| b. | What effective annual interest rate does the firm earn if the terms are changed to 3.6/7, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | 78.87 % |
| c. | What effective annual interest rate does the firm earn if the terms are changed to 2.6/7, net 45, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer 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 2.6/12, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | % |
A firm offers terms of 2.2/7, net 60.
| 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 and round your final answer 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 3.2/7, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer 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 2.2/7, net 75, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer 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 2.2/12, net 60, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| Effective annual interest rate | % |
