Suppose one of the suppliers to Mayo Clinic offers terms of 2/20, net 30. 20 days . How many days does the business have to pay its bill from this supplier in order to get the discount? . What is the approximate cost of the costly trade credit offered by this supplier? Note: Assume 360 days per year; format for 'b' is xx.x%
Added by Diana T.
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Step 1: The terms 2/20, net 30 mean that the business can take a 2% discount if they pay the bill within 20 days, otherwise the full amount is due in 30 days. Show more…
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