This question is solved using the following formula: 360 × Discount % Total period for payment ? Period for discount payment 100% ? Discount % Inputting the information from the question into the formula, we get 24.49%, as follows: 360 × .02 45 ? 15 1.00 ? .02 = 12 × .020408 = .2449 or 24.49%.
This is the amount of the discount for paying within 15 days. The correct formula to use is: 360 × Discount % Total period for payment ? Period for discount payment 100% ? Discount %
This is (360 / 45) × (2 / 100) = .16 or 16%. The correct formula to use is: 360 × Discount % Total period for payment ? Period for discount payment 100% ? Discount %
This is (360 / 15) × (2 / 100) = .48 or 48%. The correct formula to use is: 360 × Discount % Total period for payment ? Period for discount payment 100% ? Discount %
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