Ok this seems like it should be real simple but I have no idea what i am doing..
7.)You have purchased $10,000 worth of goods. The dealer is giving you terms of 2/10, n/30. You were billed on July 7.
A.What is the last date the payment can reach the dealer without being delinquent?
B.What is the last date that you are eligible for the discount?
C.If the discount is taken, how much will be paid to the dealer?
D.If you go to the bank on day 10 to borrow the amount needed to pay the dealer at 8.5% interest, how much will you owe the bank? (principal and interest)
E.How much did you save by borrowing money to take advantage of the cash discount
7.)You have purchased $10,000 worth of goods. The dealer is giving you terms of 2/10, n/30. You were billed on July 7.
A.What is the last date the payment can reach the dealer without being delinquent?
B.What is the last date that you are eligible for the discount?
C.If the discount is taken, how much will be paid to the dealer?
D.If you go to the bank on day 10 to borrow the amount needed to pay the dealer at 8.5% interest, how much will you owe the bank? (principal and interest)
E.How much did you save by borrowing money to take advantage of the cash discount