What Effective Interest Rate Is Charged to a Purchaser Receiving

question 54

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% 5/95 = 5.26% implicit interest for 80 days.

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Definitions:

Conditional Operator

A ternary operator in C and C++ (?:) that selects one of two expressions to evaluate, based on a third expression being true or false.

Assignment Operator

An operator in programming languages used to assign a value to a variable, typically denoted by an equal sign (=).

Conditional Expressions

Expressions in programming that evaluate to different values depending on a given condition, commonly used for decision-making.

If-else Statements

Control structures that execute a block of code if a specified condition is true, and optionally another block if the condition is false.