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%

---

Definitions:

High-Context Cultures

Cultures in which communication relies heavily on the context and non-verbal cues more than on explicit words.

Verbal Messages

Communication through spoken words, including language and its nuances, to convey ideas and emotions.

Parent-Child Transactions

Interactions between parents and children that can influence the child's development and behaviors, including communication and emotional exchanges.

Parental Coalitions

The formation of an alliance between one parent and a child or children within a family, often excluding the other parent and potentially leading to family dysfunction.