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Bovio Electrical Contracting tries to take advantage of cash discounts, even if it must borrow the...

Bovio Electrical Contracting tries to take advantage of cash discounts, even if it must borrow the money for a few days in order to pay the invoice in time. Compute the savings on Bovio's purchases and terms from two different suppliers. Use a 360-day year. Assume that the number of interest days is the time between the due date and the last date to take advantage of the cash discount. Round your answers to two decimal places, if necessary. Invoice Terms Cash Discount Interest Rate on Loan Days of Interest Amount of Interest Savings a. $3,480 2.5/5, n/45 $ 8% $ $ b. $1,880 2/10, n/30 $ 10% $ $

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