Instruction 22.1: Use the Information to Answer Following Question(s)

question 49

Multiple Choice

Instruction 22.1:
Use the information to answer following question(s) .
SureDrip Irrigation Systems Inc. is supplied with plastic chips for their plastic injection molding manufacturing process. Their supplier, Sun Chemical, Inc. offers financing terms of a 2% discount if the accounts payable are paid in 10 days or less with the full balance due in 45 days. Short-term financing available to SureDrip is available at an annual rate of 9.6%. SureDrip has just purchased $400,000 of plastic chips from Sun Chemical.
-Refer to Instruction 22.1. What is the effective annual interest cost of supplier financing offered by Sun Chemical?

• A) 7.3%
• B) 9.5%
• C) 10.4%
• D) 22.9%

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Definitions:

Fetal Malnutrition

A condition in which a fetus does not receive adequate nutrients for growth and development during pregnancy.

Postnatal Life

The phase of life immediately after birth, focusing on the adaptation of both the newborn and the mother to the external environment.

Complex Diseases

Illnesses caused by a combination of genetic, environmental, and lifestyle factors, making their prevention, diagnosis, and treatment challenging.

Teratogen

An agent or factor that causes malformation of an embryo, potentially leading to severe birth defects when exposure occurs during pregnancy.