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Help with this question in the Mock exam,
6) A Company has sales of 200M per year.
Currently on average customers take 40 days to pay.
The company is considering offering a discount of 1% for payment within 15 days and expects 60% of the customers will take advantage of the discount.What is the effective annual cost of offering the discount?
How do we arrive at 15.8% as the answer?
You asked this same question in the ordinary Ask the Tutor forum, and I answered it there 2 hours ago 🙂
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