A Firm Buys on Terms of 2/8,net 45 Days,it Does

question 50

Multiple Choice

A firm buys on terms of 2/8,net 45 days,it does not take discounts,and it actually pays after 58 days.What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

• A)14.34%
• B)15.10%
• C)15.89%
• D)16.69%
• E)17.52%

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Definitions:

Light Waves

Light Waves are electromagnetic waves that are visible to the human eye, responsible for the sensation of sight and varying in wavelength to produce different colors.

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear.

Amplitude

Amplitude refers to the maximum extent of a vibration or oscillation, measured from the position of equilibrium.

Weber's Law

A principle stating that the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.