{"id":"fpa-early-pay-discount-annualized-vs-borrowing-lines","audience":"fpa","category":"finance-work","track":"finance","technique":"verification","level":"intermediate","title":"Compare an early-pay discount rate with the cost of borrowing","free":false,"task":"You're checking whether an early-payment discount is worth more than the borrowing cost. Write a prompt for plain text with lines starting \"Discount:\", \"Days accelerated:\", \"Annualized rate:\", \"Borrowing cost:\" and \"Comparison:\". On terms 1/10 net 30, the annualized rate is the discount divided by the amount paid, times 360 over the days accelerated. Show the math to one decimal. The Comparison line states which is higher as a fact, with no recommendation. Under 90 words.","materialLabel":"Source material (attached to your prompt automatically)","material":"EARLY-PAY DISCOUNT CHECK\n\nVendor terms: 1/10 net 30 (1% discount if paid by day 10; otherwise the full amount is due on day 30).\nExample invoice: $10,000.\nCompany credit line interest rate: 8% per year.\nThe company uses a 360-day year.\n\nNotes: An AP clerk's note says the discount \"is only 1%, so it's not worth chasing.\" The treasurer wants a number to compare with the credit line. Cash is currently available to pay on day 10 without drawing on the credit line, but the treasurer says the credit line would be drawn if it was needed. Annualized rate here means the simple rate (not compounded). Discount dollars on the example invoice are 1% of $10,000. Amount paid early is the invoice minus the discount.","rules":[{"type":"plainText"},{"type":"maxWords","max":90}],"promptHints":[{"label":"Names the five lines","patterns":["discount","days accelerated","annualized rate","borrowing cost","comparison"]},{"label":"Gives the formula","patterns":["360","days accelerated","amount paid"]},{"label":"Bans advice","patterns":["no recommendation","fact"]},{"label":"Asks for the math","patterns":["show the math","one decimal"]},{"label":"Caps length","patterns":["\\d+\\s*words","under \\d+"]}],"mistakes":[{"title":"Dividing by the full invoice","why":"The AI uses $100 / $10,000 and gets 18.0%.","fix":"Say: \"Divide by the amount paid: invoice minus the discount.\"","checks":["r1"]},{"title":"Missing labels","why":"The AI writes a paragraph.","fix":"Add: \"Five lines with these exact labels in order.\"","checks":["r0"]},{"title":"Forgetting the annualizing step","why":"The AI says the discount is 1%.","fix":"Add: \"Multiply by 360 over the days accelerated.\"","checks":["r1"]},{"title":"Giving advice","why":"The AI tells the treasurer to take the discount.","fix":"Add: \"State which is higher as a fact; no recommendation.\"","checks":["r2"]},{"title":"Markdown extras","why":"The AI adds bold labels, headings and a closing note.","fix":"Say: \"Plain text, no bold. Output only the lines asked for.\"","checks":["plainText"]},{"title":"Trusting the AI to count words","why":"AI is bad at counting and runs past word limits.","fix":"Ask for fewer words than the real cap and keep each part short.","checks":["maxWords"]}],"hint":"The annualized rate comes from a formula. Give it, with the denominator and the 360, and keep the comparison factual.","rubricLabels":["Discount shows 1% x $10,000 = $100 and Days accelerated shows 30 - 10 = 20","Annualized rate shows $100 / $9,900 x 360 / 20 = 18.2% (about 1.0101% x 18)","Borrowing cost shows 8% and Comparison states 18.2% is higher than 8% as a fact, without a recommendation or agreeing that the discount is not worth it"]}