You place an order for 2,100 units of Good X at a unit price of $58. The supplie
ID: 2751199 • Letter: Y
Question
You place an order for 2,100 units of Good X at a unit price of $58. The supplier offers terms of 1/30, net 35. Requirement 1. How long do you have to pay before the account is overdue? (b) If you take the full period, how much should you remit?
Requirement 2: (a) What is the discount being offered? (b) How quickly must you pay to get the discount? c) If you do take the discount, how much should you remit?
Requirement 3: (a) If you don’t take the discount, how much interest are you paying implicitly? Implicit interest $ (b) How many days’ credit are you receiving?
Explanation / Answer
1a) 35 Days
1b) 2100*58 i.e 121800
2a) 121800*1% i.e 1218
2b) 30 days
2c) 121800-1218 i.e 120582
3a) 1218
3b) 35 days
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