What Is the Effective Annual Cost of Credit Terms of 2/20,net

question 20

Multiple Choice

What is the effective annual cost of credit terms of 2/20,net 60,if the firm stretches the accounts payable to 80 days?

• A)6.4 %
• B)13.1%
• C)21.1%
• D)34.2%
• E)41.4%

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Ocean

A vast body of salt water that covers approximately 71% of Earth's surface, divided into five major oceans.

Solidify

The process by which a substance changes from a liquid to a solid state, often as a result of cooling or a chemical reaction.

Flood Basalts

Large volcanic eruptions that cover large areas with basalt lava, often contributing to significant geological formations.

Life on Earth

Refers to the existence and diversity of living organisms on the planet Earth, including plants, animals, and microorganisms.