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Tim Stark is a new accountant with Watts Company Tim Stark is a new accountant with Watts Company. Watts purchased merchandise on account for $9,000. The credit terms are 2/10, n/30. Tim has talked with the company’s banker and knows that he could earn 8% on any money invested in the company’s savings account. Instructions (a) Should Tim pay the invoice within the discount period or should he keep the $9,000 in the savings account and pay at the end of the credit period? Support your recommendation with a calculation showing which action would be best. (b) If Tim forgoes the discount, it may be viewed as paying an interest rate of 2% for the use of $9,000 for 20 days. Calculate the annual rate of interest that this is equivalent to. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Tim Stark is a new accountant with Watts Company

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