Math Question! If a customer has average sales of $100,000 a year and pays on average 30 days over terms...?

What is that costing me if my interest rate is 5%? And what is the equation to calculate?

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  • 1 decade ago
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    Every $1 sale costs 30 days in interest.

    Solution is 100,000 x 0.05 x 30/365 = $410.96

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