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%

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Definitions:

Lungs

The pair of respiratory organs in the chest of humans and many animals, responsible for the exchange of oxygen and carbon dioxide.

Prenatal Period

The developmental period before birth, spanning from conception to birth.

Blastocyst

An early stage in embryonic development characterized by a sphere of cells surrounding a fluid-filled cavity and a cluster of cells that will develop into the embryo.

Teratogen

An agent or factor that causes malformation of an embryo or fetus, including certain drugs, chemicals, and infections.