Your Company Has Been Offered Credit Terms of 4/30,net 90

question 65

Multiple Choice

Your company has been offered credit terms of 4/30,net 90 days.What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)

• A)16.05%
• B)16.90%
• C)17.74%
• D)18.63%
• E)19.56%

---

Definitions:

Typeface

The design of a set of characters including letters, numbers, and symbols that share a common design theme.

Business Message

A communication conveyed by a company to its audience, including information, promotions, or updates.

Italic Type

A font style in which the text is slanted to the right, often used for emphasis or distinction.

Boldface

A typeface style that is darker and thicker than the normal representation of a letter, used for emphasis or to attract attention.