Extended credit term 2/10 net 30 EOM for Russell Corporation. In this case, if the payment is not made within 10 days, what will be the annual percentage cash return rate?
The annual percentage cash return rate in this case would be 36%. This is calculated by taking the number of days (30) and dividing it by the number of days in a year (365) to get 0.0821917808, then multiplying that by the discount rate (2) to get 0.1643835616, and finally multiplying that by 100 to get the annual percentage cash return rate of 36%.
