What Effective Interest Rate Is Charged to a Purchaser Receiving

question 93

Multiple Choice

What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90 days?

• A) 20.00%
• B) 22.81%
• C) 24.93%
• D)26.37%

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Definitions:

Tab Order Dialog Box

A dialog box that allows users to set or change the order in which input fields are selected when tabbing through a form.

Page Setup Tab

A component of many software applications that provides options for configuring the layout of a printed page, including margins, size, and orientation.

Decimal Places

The number of digits to the right of the decimal point in a numerical value, indicating its precision.

Currency Data Type

A special type of data in programming and databases designed to accurately store and handle monetary values, including specific precision and formatting.