Firm Buys on Terms of 3/15, Net 45

question 45

Multiple Choice

firm buys on terms of 3/15, net 45.It does not take the discount, and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

• A)25.09%
• B)27.59%
• C)30.35%
• D)33.39%
• E)36.73%

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Definitions:

Posterior Portion

The rear part of something, often referring to the back side of the body or an organ.

Vertebral Foramen

The vertebral foramen is the central canal within each vertebra of the spine through which the spinal cord passes.

Laminae

Thin layers or plates of tissue or material, forming part of the structure of plants or animals.

Sacral Foramina

Openings in the sacral bone of the spine through which nerves and blood vessels pass.