Biology Forums - Study Force

Wei Fang Food Importers often tries to take advantage of cash discounts, even if it must borrow the money for a few days in order to pay the invoice in time. Compute the savings on Wei Fang's purchases and terms from two different suppliers. Use a 365-day year. Assume that the number of interest days is the time between the due date and the last date to take advantage of the cash discount.

				Interest
				Rate	Days	Amount
			Cash	on	of	of
	Invoice	Terms	Discount	Loan	Interest	Interest	Savings
a.	$2,650	3/5, n/15	________	9%	________	________	________
b.	$3,600	2/10, n/30	________	10%	________	________	________

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