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Trader Pete's buys $6,000,000 (invoice price) of inventory from one of its vendors on terms of 3/10, net 40: Trader Pete's Gross Price is: 6000000 2....
Trader Pete's buys $6,000,000 (invoice price) of inventory from one of its vendors on terms of 3/10, net 40:
1. Trader Pete's Gross Price is: 6000000
2. Trader Pete's True Price is: 5820000
3. Trader Pete's financing cost is:
4. Trader Pete's Net Daily Payable (NDP)cost is:
5. Trader Pete's Total Trade Credit is:
6. Trader Pete's Free Trade Credit is:
7. Trader Pete's Costly Trade Credit is:
8. Show Work - using the Costly Trade Credit Formula the cost rate is:
9. Show Work Using the Approximate Cost Formula the cost rate is:
10. Trader Pete's Effective Annual Rate (EAR) is:
