Your supplier offers terms of 1/10, Net 45. What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45? 1.56K viewsJanuary 1, 2017 0 Darshita6.14K January 1, 2017 0 Comments Your supplier offers terms of 1/10, Net 45. What is the effective annual cost of trade credit if you choose to forgo the discount and pay on day 45? 1 Answer ActiveVotedNewestOldest 0 Darshita6.14K Posted January 1, 2017 0 Comments Cost of Trade (EAR) = ( 1 + 1/99)^(365/35) – 1 = 11.05% Register or Login
