What Is the Effective Annual Rate of Trade Credit If

question 113

Multiple Choice

What is the effective annual rate of trade credit if the trade credit terms are 1/10,net 30?

• A) 13.01%
• B) 18.00%
• C) 18.43%
• D) 20.13%

---

Definitions:

Markdown Percentage

A measure of the reduction in price of an item or goods, expressed as a percentage of the original price, often used in retail to clear old stock.

Marketing Metrics

Quantitative measures used to monitor, evaluate, and guide the effectiveness of marketing strategies and campaigns.

Financial Indicator

Quantitative measures used to assess the financial health, performance, and stability of a business or investment.

Same-Store Sales Growth

Refers to the revenue increase from a retailer's existing outlets over a given period, eliminating effects from new store openings.