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

question 70

Multiple Choice

A firm buys on terms of 3/15,net 45.It does not take the discount,and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit,based on a 365-day year?

• A)25.09%
• B)27.59%
• C)30.35%
• D)33.39%
• E)36.73%

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Definitions:

Programmed

The state of having been designed or set up according to a predetermined plan or set of instructions, often used in the context of machinery, computers, or behavioral interventions.

Cellular Modification Theory

A hypothesis in neuroscience suggesting that changes in brain cells' structure or function underpin learning and memory.

Neural Circuits

Complex networks of neurons that work together to process information and execute functions necessary for life and behavior.

Habituation

The process of becoming accustomed to a stimulus through repeated exposure, leading to a decrease in responsiveness.