A Firm Buys on Terms of 3/15,net 45

question 70

Multiple Choice

A 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:

Intercept Interviews

A research method where respondents are randomly selected and interviewed in public places, such as shopping malls or on the street, to gather immediate feedback or opinions.

Idea Evaluation

The assessment of new ideas for products, services, or processes, considering their feasibility, potential market, and impact on the organization.

Mail Survey

A research method where questionnaires are sent via postal mail to selected participants to gather feedback or opinions.

Online Survey

A data collection method where questionnaires are distributed and filled out by respondents over the Internet.