Your firm sells for cash only, but it is thinking of offering credit, allowing customers 90 days to pay. Customers understand the time value of money, so they would all wait and pay on the 90th day. To carry these receivables, you would have to borrow funds from your bank at a nominal 10%, daily compounding based on a 360-day year. You want to increase your base prices by exactly enough to offset your bank interest cost. To the closest whole percentage point, by how much should you raise your product prices? Do not round intermediate calculations. Round your answer to the nearest whole number.

3% to the closest whole percentage point.

Explanation:

The bank interest cost is 10% based on 360 days.

Your firm needs funds for 90 days till the receivables comes in.

The relevant rate will be what the bank charges for 90 days;

= 10% * (90/360)

= 2.5%

= 3% to the closest whole percentage point.

the first historical instance of china engaging in internationalism was during the han dynasty.[1] at the start of the han dynasty, the huns in the north were attacking the frontiers of han and trying to obtain riches. emperor wu of han wanted to gain an alliance with a country called dayuezhi so the two countries could join together and fight against the huns.[2] to obtain this alliance, emperor wu sent zhang qian to the west to establish economic and cultural connections.[2] history records that during the han dynasty there were four primary avenues of contact between china and europe. they included the northern land route, the central land route, the southern sea route, and the far southern sea route.[1] the most famous of these routes is the central land route, or the classical silk road, comprising a network of roads stretching from northwest china to the ports of syria and the black sea, which passed through the oasis of the turkestans and northern persia.[1] the silk road was significant for chinese emperors because it provided dominance over central asia by developing resources and provided new markets for the export of china's most valuable resources.[1]