Scott Company Purchased Merchandise with an Invoice Price of $3,000

question 123

Multiple Choice

Scott Company purchased merchandise with an invoice price of $3,000 and credit terms of 1/10, n/30.Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?

• A)20%
• B)24%
• C)18%
• D)36%

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Definitions:

Retrieved

The process of getting back information stored in memory.

Prospective Memory

Memory to perform an act in the future, as at a certain time or when a certain event occurs.

Declarative Nature

The quality of being explicit or clear in expression, often used in the context of statements or propositions that convey information straightforwardly.

Hippocampus

A major component of the brain that plays critical roles in the consolidation of information from short-term memory to long-term memory and spatial memory.