Calculates the cost of not taking a cash discount.
Formula: fcdisc*360*100/((100-fcdisc)*(totd-discd))
You receive a bill with the credit terms 2/10, NET/30. What is the cost of not taking the cash discount?
Value | Key | Display | Description |
---|---|---|---|
2 | disc% | 2.00 | Stores the discount%. |
10 | d days | 10.00 | Stores the number of days the discount is available. |
30 | t days | 30.00 | Stores the total number of days until the bill must be paid. |
cost% | 36.73 | Calculates the cost of not taking the discount as an annual percentage rate. |
Another way to calculate this is using the Simple Interest Loan - Days Calculator. Say you have the choice of $980 in 10 days or $1,000 in 30 days. So for a debt of 1000, loan of 980 (1000-2%) for 20 days that calculator gives i% as 37.24%. The difference can be attributed to using a 360 or 365 day year. (37.24*360/365=36.73) If you enter two dates 20 days apart (310, 330) on the Simple Interest Loan - NASD calculator, it will calculate 36.73 since it uses a 360 day year.
Reference: HP 10bii+ User Guide Additional Examples