Farwell Company Purchased Merchandise with an Invoice Price of $2,000

question 56

Multiple Choice

Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 2/10, n/30.Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?

• A)4%
• B)24%
• C)36%
• D)72%

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Definitions:

Call Reluctance

Not wanting to contact a prospect or customer.

Salespeople

Individuals whose job involves selling or promoting products and services to customers.

Time Spent

The duration or period devoted to a specific activity, task, or interaction.

Telephone

A communication device that allows two or more users to conduct a conversation when they are too far apart to be heard directly, often used in sales and marketing.