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:

Acquiring

The process of obtaining or acquiring something, often used in the context of business acquisitions or the gathering of information or skills.

Keeping

The act of maintaining or preserving something in a particular state or condition, often referring to records, objects, or animals.

Information in Action

Information in action signifies the practical use and application of data and information to make decisions, solve problems, or trigger specific processes and activities.

Contextual

Pertaining to or based on the context or surroundings of something, especially words or events that influence meaning or effect.