plz Sir … may i know how to calculate i? A co has available to it a cash dis of 4% for immediate payment of supplier’s invoice.The only alter open to the Co is to pay the full invoice value in two month’s time. Wt is the implied monthly interest rate of not taking the supplier’s dis? 2.062% 2.083% 2% 1.98%
I explain exactly how to calculate this in my free lectures on the management of receivables and payables. I am sorry but you really cannot expect me to type out my lectures again here 🙂
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