A Supplier Grants Your Firm Credit Terms of 2/10,net 40

question 56

Multiple Choice

A supplier grants your firm credit terms of 2/10,net 40.What is the effective annual rate of the discount if the firm purchases $4,800 worth of merchandise?

• A)27.24 percent
• B)26.57 percent
• C)28.80 percent
• D)29.03 percent
• E)29.27 percent

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