Grayson Company Purchased Merchandise with an Invoice Price of $2,000

question 141

Short Answer

Grayson Company purchased merchandise with an invoice price of $2,000 and credit terms of 3/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?
A)3%
B)8%
C)36% d 54%

• A)3%
• B)8%
• C)36% d 54%

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Definitions:

Bond Dipole

A measure of the polarity of a chemical bond between two atoms, characterized by a difference in electronegativity and resulting in a partial positive and partial negative end.

Acidity

A measure of a substance's ability to donate a proton (H+) in a chemical reaction, often discussed in the context of acid-base chemistry.

Compounds

Substances composed of two or more elements chemically combined in fixed proportions, can be broken down into simpler substances.

Saquinavir

An antiretroviral drug used in the treatment of HIV infection, acting as a protease inhibitor to interfere with viral replication.