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:

Grasses

Members of the Poaceae family, a large and nearly ubiquitous family of monocotyledonous flowering plants.

Competitive Interaction

The interaction between organisms or species, in which the fitness of one is lowered by the presence of another.

Diversity Of Life

The variety of living organisms on Earth, encompassing genetic, species, and ecosystem diversity.