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# Cost of Not Taking a Cash Discount Calculator

Calculates the cost of not taking a cash discount. Formula: fcdisc*360*100/((100-fcdisc)*(totd-discd))

## Example 1

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