Assume a credit term of 3/10 net 30, opportunity cost of capital at 12% p.a., and Rs 20,000 being the average invoice value of the order. Should the buyer stretch the payment by 10 days and pay 2%...

Assume a credit term of 3/10 net 30, opportunity cost of capital at 12% p.a., and Rs 20,000 being the average invoice value of the order. Should the buyer stretch the payment by 10 days and pay 2% penal interest rate?

Find out the effective annual interest rate if sale is made on a credit term of 2/10 net 60 and the payment is not made within 10 days.