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Question

Dixie Tours Inc. buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to $720,000 per year. What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.)

Submitted: 137 days and 15 hours ago.

Category: Finance

Value: $9

Status: AWAITING CUSTOMER ACTION

Posted by Milan Vaishnav 137 days and 14 hours ago.

Info Request

Dear Friend,

Can you please explain what is 2/15 is ? I think you require interest % rate to calculate.
Regards,

Answer

Hello and welcome to Just Answer

Please click here for the solution

Regards,

P.S> Please advise the name of the book you are using: Title, author's name, and edition

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Expert:	BusinessTutor
Pos. Feedback:	100.0 %
Answered:	7/8/2009

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