Jiffy Park Inc. can buy its inventory from the following two suppliers both of which offer essentially the same pricing and quality. Their credit terms are as follows:
Supplier A 2/10, net 30
Supplier B 3/10, net 20
Jiffy Park is frequently short on cash and is often unable to take advantage of prompt payment discounts. Calculate the nominal cost of trade credit for each supplier given that Jiffy Park will usually pay its suppliers in 40 days.
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