If Credit Terms Are 2/30,net 60,what Is the Effective Annual

question 78

Multiple Choice

If credit terms are 2/30,net 60,what is the effective annual rate for a customer's loan when the customer pays the invoice in 60 days?

• A) 44%
• B) 16%
• C) 59%
• D) 11%
• E) 28%

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Definitions:

Allocations

The process of distributing resources, such as time, money, or materials, among various projects or departments.

Sales Forecast

An estimate of the expected sales for a particular product or service over a specific period, considering factors like market trends and historical data.

Staircase Analysis

A step-by-step approach to breaking down information or data to understand hierarchical or sequential relationships.

Consumer Group

A consumer group consists of individuals and households that share similar needs and preferences in products or services.