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:

Great Vessels

The major arteries and veins connected directly to the heart, responsible for transporting blood to and from the body's organs.

Peripheral Chemoreceptors

Sensory receptors located in the carotid and aortic bodies that detect changes in the chemical composition of blood, including oxygen and carbon dioxide levels.

Oxygen Levels

The concentration of oxygen in a particular environment, often measured in terms of partial pressure or saturation.

Blood Pressure

Blood pressure is the force exerted by circulating blood on the walls of the body's arteries, important for maintaining blood flow through the body.