A Firm Offers Credit Terms of 2/15, Net 45

question 37

Multiple Choice

A firm offers credit terms of 2/15, net 45. What effective annual interest rate does the firm earn when a customer forgoes the discount?

• A) 18.67 percent
• B) 20.45 percent
• C) 23.37 percent
• D) 25.34 percent
• E) 27.86 percent

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Definitions:

Cosmid Cloning Vectors

A type of cloning vector used in molecular biology and genetic engineering to artificially build bacterial strains with large DNA fragments.

Bacterial Artificial Chromosomes

Engineered DNA molecules used in genetics and molecular biology research to clone large DNA fragments from an organism's genome.

DNA Profile

A unique pattern of DNA characteristics that can be used to identify an individual or to compare genetic relationships.

STR Markers

Short Tandem Repeat markers, sequences in the DNA that are repeated multiple times, used in genetic profiling and forensic analysis to identify individuals.