Percentage Cost of Early Settlement Discount for Accounts Receivable

You wouldn't normally multiply it by anything :-) If you watch my free lectures you will see that there are either 'simple' discounts, in which case you only really need to calculate the equivalent annual % in order to decide whether or not the discount is worth taking, or - much more likely - we need to take several factors into account and calculate the $ costs and benefits per annum, In this second case we con't need (and can't calculate) and annual percentage.