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		<summary type="html">&lt;p&gt;Dirtywhiz69949: Created page with &amp;quot; The normal argument against taking advantage of purchase discounts is the value of cash on hand. You may argue that keeping the amount in your company longer far outweighs the s...&amp;quot;&lt;/p&gt;
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&lt;div&gt; The normal argument against taking advantage of purchase discounts is the value of cash on hand. You may argue that keeping the amount in your company longer far outweighs the skimpy 1% that a purchase discount generates. That math shows otherwise. Get, for instance, the most common credit terms of 1% 10 Net 30. Remember, this provides you a 1% price reduction for paying 20 days earlier in the cycle. See, nevertheless, that will banks state their returns influenced by an Annual Percentage Give in (APY) charge, not for a 20 day rate. The math to position the 20 day investment in terms of an APY starts with dividing into a 360 day period (known as a banker's year). Very simple division of 360 and 20 equals 18, showing that actual discount is &amp;quot;worth&amp;quot; 18 times more than its face value. Which means that, some sort of discount rate of 1% produces the equivalent of 18% APY. &lt;br /&gt;
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