Each of the following situations involves the use of discounts.
Discounts
Each of the following situations involves the use of discounts.
1. How much discount may Seals Inc. take in each of the following transactions? What was the
annualized interest rate?
a. Seals purchases inventory costing $450, 2/10, n/40.
b. Seals purchases new office furniture costing $1,500, terms 1/10, n/30.
2. Calculate the discount rate that Croft Co. received in each of these transactions.
a. Croft purchased office supplies costing $200 and paid within the discount period with a
check for $196.
b. Croft purchased merchandise for $2,800. It paid within the discount period with a check for
$2,674.
Answers
Status NEW
Posted 23 Jun 2017 07:06 AM
My Price 7.00
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Attachments
file 1498203481-1989880_1_636337755694977809_discount-rates.xlsx preview (139 words )
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