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:

Maintenance Rehearsal

Repeating information over and over again until it is no longer needed; may eventually lead to storage of information in long-term memory.

Physical Features

Observable characteristics of the body, including traits such as height, build, hair color, and facial features.

Stimulus to be Remembered

An item, event, or condition that is to be recalled or retained in memory.

Elaborative Rehearsal

A memory technique that involves thinking about the meaning of the term to be remembered, as opposed to merely repeating the word to yourself.