You place an order for 320 units of inventory at a unit price of $180. The suppl

ID: 2766475 • Letter: Y

Question

You place an order for 320 units of inventory at a unit price of $180. The supplier offers terms of 3/15, net 30.

a-1 How long do you have to pay before the account is overdue? Days until overdue days a-2 If you take the full period, how much should you remit?

Remittance $

b-1 What is the discount being offered?

Discount offered %

b-2 How quickly must you pay to get the discount?

Number of days days

b-3 If you do take the discount, how much should you remit?

Remittance $

c-1 If you don’t take the discount, how much interest are you paying implicitly?

Implicit interest $

c-2 How many days’ credit are you receiving?

Days' credit days

a1. You have to pay the full amount within 30 days. You have to pay within 30 days after which account becomes overdue

a2. If you take the full period, you need to remit = 180*320 = $57,600

b1. The discount being offerered is 3%

b2. You must pay within 15 days to get the discount

c1. The amount you pay with discount = 180*320 =57600 *(1-0.03) = 55,872

The amount without discount = $ 57,600

The implicit interest = 57,600 -55,872 = $1,728

c2. You are receiving 15 days credit

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.