Your Supplier Grants You Credit Terms of 2/10, Net 40

question 381

Multiple Choice

Your supplier grants you credit terms of 2/10, net 40. What is the effective annual rate of not taking the discount if you purchase $2,500 worth of merchandise?

• A) 14.9 percent
• B) 17.8 percent
• C) 21.9 percent
• D) 27.9 percent
• E) 31.0 percent

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Definitions:

Emotional Disorders

A category of mental health issues characterized by emotional disturbance, including disorders such as depression and anxiety.

Improvement

The process of becoming better or achieving a higher standard in quality, efficiency, or performance.

Psychotherapy

A therapeutic treatment involving psychological techniques, designed to assist individuals in overcoming difficulties or achieving personal growth.

Depressed Patients

Individuals diagnosed with depression, a mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.