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F. Naz
F. Naz, B.Com
Category: Single Problem
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Experience:  Have completed B.Com and CA Finalist
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Company purchased merchandise with an invoice price of

Customer Question

Scott Company purchased merchandise with an invoice price of $3,000 and credit terms of 1/10, n/30. The company assumes a 360 day year. What is the implied annual interest rate inherent in the credit terms if Scott Company passes up the discount?
Submitted: 9 months ago.
Category: Single Problem
Expert:  F. Naz replied 9 months ago.

.01/.99/20*360 = 0.1818 or 18.18%

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