A retailer owes a wholesaler 600 000 due in 45 days If the

Last updated: 3/24/2023

A retailer owes a wholesaler 600 000 due in 45 days If the payment is 15 days late there is a 1 penalty charge The retailer can get a 45 day certificate of deposit CD earning 7 per year simple interest or a 60 day certificate earning 8 per year simple interest Is it better to take the 45 day certificate and pay on time or to take the 60 day certificate and pay late with the penalty The 45 day certificate is better The 60 day certificate is better They are equivalent