A Firm Offers Terms of 2/9,net 41

question 20

Multiple Choice

A firm offers terms of 2/9,net 41.What effective annual interest rate does the firm earn when a customer does not take the discount?

• A)18.67 percent
• B)20.45 percent
• C)23.37 percent
• D)25.34 percent
• E)25.92 percent

---

Definitions:

Government in the Sunshine Act

A 1976 U.S. law aimed at ensuring that meetings of government agencies are conducted in public, promoting transparency and accountability.

Transparency

The practice of making actions, decisions, or processes openly accessible and understandable to others, fostering accountability.

Open Forums

Public places or services where people can express and exchange ideas freely, often subject to government protection in terms of free speech rights.

Political Appointee

A person appointed to a governmental position by a political leader, often based on their allegiance or qualifications.