- This topic has 2 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
One supplier has offered a discount to Box Co of 2% on an invoice for $7,500, if payment is made within one month, rather than the three months normally taken to pay. If Box’s overdraft rate is 10% pa, is it financially worthwhile for them to accept the discount and pay early?
The answer is given as $25 by borrowing $7500 for 2 months. Whereas I think if $7350 is to be paid and hence borrowed the benefit should be $27.5? Am I right?
One supplier has offered a discount to Box Co of 2% on an invoice for $7,500, if payment is made within one month, rather than the three months normally taken to pay. If Box’s overdraft rate is 10% pa, is it financially worthwhile for them to accept the discount and pay early?
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.