A Firm Buys on Terms of 3/15,net 45 Days

question 38

Multiple Choice

A firm buys on terms of 3/15,net 45 days.It does not take the discount,and it generally pays after 65 days.What is the nominal annual cost of its non-free trade credit,based on a 365-day year?

• A)22.58%
• B)23.71%
• C)24.89%
• D)26.14%

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{ }

Curly braces are used in programming languages to define a block of code.

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A statement in programming languages used to exit a function and optionally pass back a value to the caller.

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The act of calling a method or a function in a program.