Calculate the Effective Interest Rate of a 2/5, Net 25

question 88

Multiple Choice

Calculate the effective interest rate of a 2/5, net 25 terms of sale, using a 365-day year.

• A)24.5%
• B)36.5%
• C)42.5%
• D)55.5%

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Definitions:

Hypnosis

A trance-like state of focused attention, reduced peripheral awareness, and an enhanced capacity to respond to suggestion.

Conversion Disorder

A mental condition whereby psychological stress or conflict is expressed through physical symptoms that are not attributable to any medical cause.

Relaxation Training

A therapeutic technique aimed at teaching individuals how to effectively reduce stress and tension in the body.

Behavioral Medicine

An interdisciplinary field that combines both medical and psychological approaches to address and treat physical health problems.