Discount rate - what to use?

  • Thread starter Thread starter tiger1969
  • Start date Start date
T

tiger1969

How do you write a formula that calculates the Annual Percentag
Interest Cost of the Discount not taken for any set of data.

Annual Percentage Interest Cost of Discount Not Taken

Prompt Payment Discount Amount 2.5%

Invoice has to be paid within how many days to qualify for the discoun
10
Net amount of invoice to be paid within how many days 30

Annual Percentage Interest Cost of Discount Not Taken

Please help

Graham
 
You want to answer the question: If I invest $97.50, what interest rate gets me
to $100.00 in 20 days? The rate function will do this for you:

=rate(20/365,0,-97.50,100.00)

The answer is 58.73%.
 

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