A Firm Is Offered Trade Credit Terms of 2/8,net 45

question 100

Multiple Choice

A firm is offered trade credit terms of 2/8,net 45 days.The firm does not take the discount,and it pays after 58 days.What is the effective annual cost of not taking this discount? (Assume a 365-day year.)

• A)13.35%
• B)14.70%
• C)15.89%
• D)18.70%

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Definitions:

Paralegal Certificate

A credential awarded upon completion of a course of study in paralegal studies, usually at a college, university, or specialized institution, preparing individuals to work as paralegals or legal assistants.

Postgraduate Certificate

A qualification at the postgraduate level that typically requires completion of a short-term educational program after obtaining a bachelor's degree.

Associate's Degree

An undergraduate academic degree awarded by colleges and universities upon completion of a course of study lasting two years.

Professional Paralegal Behavior

Refers to the ethical and professional conduct expected of paralegals, including competency, confidentiality, and integrity in legal practice.