Vendor Discount Effective Rate of Interest Calculator
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A vendor offers you an early payment discount.
You will get a 2% discount if you pay the balance within days.
Otherwise, the full balance is due in days.
What is the effective interest rate earned on this discount?
Effective Interest Rate on the Discount Formula is below:
This is stated as 2/ net
Discount %
100 - Discount %
x
360
Balance Due Days - Discount Period Days
2%
100 - 2%
x
360
-
2%
98%
x
360
0%
Effective rate of interest = 0.020408163265306 x INF
Effective rate of interest = INF or INF%
You have 2 free calculationss remaining
How does the Vendor Discount Effective Rate of Interest Calculator work?
Free Vendor Discount Effective Rate of Interest Calculator - Calculates the effective rate of interest earned from a vendor discount for a prepayment of a balance within a certain amount of days for a percentage discount This calculator has 3 inputs.
What 1 formula is used for the Vendor Discount Effective Rate of Interest Calculator?
Discount %/(100 - Discount %) * 360/(Balance Due Days - Discount Period Days)