Finance
posted by Alison .
Brand Advertising is offered a 3/10 net 40 trade discount by its supplier. In the past Brand has been able to ger away with paying for supplies on credit in 60 days. Since it doesn't have money on hand to take advantage of the discount, it tries to negotiate a loan with Portland State Bank. The amount of $400,000 with a 12% compensating balance and a $6,200 interest charge has been negotiated for the month of May . Brand already maintains a $16,250 balance at the bank. Compute the effective rate of interest on the loan, and the cost of not taking the discount. Should Brand take advantage of the cash discount?

Jsksnsdd
Respond to this Question
Similar Questions

marketing
what are the pricing issues in the product category? 
math
David helps his dad with grocery shopping.he wants to buy brand x or brand y laundry detergent.he knows his dad wants the best value,so he compares the prices.48 ounces of brand x is 5.76.two pounds of brand y is 4.80.which brand is … 
science
please tell me if you agree with the following: Which Brand of popcorn hs the least amount of unpooped kernels after 3 minutes. Brand 1 has 1 Brand 2 has 15 Brand 3 has 16 Brand 4 has 5 Brand 5 has 25 the answer is Brand 1 BUT is the: … 
math help1answer
4. Which of the following has the lowest unit price? 
Math
Brand A: 20 for $2.50 Brand B: 35 for $3.25 Brand C: 50 for $5.25 Brand D: 100 for $10.00 The school nurse is low on bandaids. She heads to the store and finds 4 brands. Which one is the best buy? 
Business math
A watch with a list price of $889.00 is sold by a wholesaler at a net cost of $545.75. Find the single trade discount rate being offered. round to the nearest tenth of a percent 889.00*61.4? 
Finance
If a firm buys on trade credit terms of 3/10, net 50 and decides to forgo the trade credit discount and pay on the net day, what is annualized cost of forgoing the discount (assume a 360day year)? 
Finance
Brand advertising is offered a 3/10 net 40 trade discount by its supplier. In the past Brand has been able to get away with paying for supplies on credit in 60days. since it doesnt have money on hand to take advantage of discount, … 
FIN/370
If a firm buys on trade credit terms of 1/10, net 45 decides to forgo the trade credit discount and pay on the net day, what is the annualized cost of forgoing the discount (assume a 360day year)? 
Math
Janet Foster bought a computer and printer at Computerland. The printer had a $620 list price with a $100 trade discount and 2/10, n/30 terms. The computer had a $2,200 list price with a 25% trade discount but no cash discount. On …