Can someone help me Please! Unit 15

wayne

Average customer invoice is 1000 pound and normal terms of trade are 60 days from invoice date.The company is giving a 2.5% discount for payment within 14 days
Calculate ANNUAL PERCENTAGE COST for the discount below (you need to take account of compound interest)
Thanks

Rachey

wayne wrote: »

Average customer invoice is 1000 pound and normal terms of trade are 60 days from invoice date.The company is giving a 2.5% discount for payment within 14 days
Calculate ANNUAL PERCENTAGE COST for the discount below (you need to take account of compound interest)
Thanks

There's a huge formula on this in the kaplan book. Its too lengthy to remember off the top of my head. Is that the question from the simulation? I had that one too.

CJC

Wayne,there are several threads about this in the Technician/Diploma forum and while they may have generated more heat than light you might find them useful.