Can anyone help me to solve the problem ?

Deepak V

New member
Joined
Nov 22, 2015
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1
How to solve this mathematical equation?

Sir,
For your clarification the question is narrated below :

Management of Sundry Creditors​
Qn:
Suppose ABC Ltd has been offered credit terms from its major supplier of 2/10, net 45 . Hence the company has the choice of paying Rs.10 per Rs100 or to invest the Rs. 98 for an additional 35 days and eventually pay the supplier Rs100 per Rs 100. The decision as to whether the discount should be accepted depends on the opportunity cost of investion Rs 98 for 35 days. What should the company do? [Financial mangement ]
In the particular question we have to find the cost of interest . The formula is :-
The cost of interest = (100/100-d)365/t -1


Here, discount (d) = 2 ; t = 35 days.

How to find the cost of interest percentage ?
Ignore the decision making part and the rest of figures given in the question. Please provide the steps to solve this type of calculations.

Thanks in advance,

Deepak V.
 
Last edited:

stapel

Super Moderator
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Joined
Feb 4, 2004
Messages
15,943
How to solve the following equation?
It is relating to Payable management.
(100/100-d)365/t -1
suppose d = 6 & t = 35
There is no equation (nothing with an "equals" sign in it), so there is nothing to "solve". Are you perhaps supposed to "evaluate"? If so, plug the given values in for the given variables in the given expression, and simplify. ;)
 
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