Say the average customer invoice is £3k and normal terms of trade are 30 days from invoice date.

If the company is considering 3% settlement discount for payments within 7 days, How do you calculate the annual percentage cost of this discount?

can anyone show me how I would work this out, thanks.

I cant find the formula anywhere.

If the company is considering 3% settlement discount for payments within 7 days, How do you calculate the annual percentage cost of this discount?

can anyone show me how I would work this out, thanks.

I cant find the formula anywhere.

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