With Terms of 4/15,net 60,what Is the Implied Interest Rate

question 16

Multiple Choice

With terms of 4/15,net 60,what is the implied interest rate for forgoing a cash discount and paying at the end of the credit period?

• A) 25.63%
• B) 28.19%
• C) 39.25%
• D) 61.15%

---

Definitions:

Shoulder

The part of a roadway where drivers can stop safely in case of an emergency; also refers to the lateral part of the human body from the neck to the arm.

Duty to Assist

An obligation to provide support or assistance, particularly in contexts like government services where individuals may need help navigating processes.

Diving Equipment

Gear and tools used for underwater activities, including masks, fins, and oxygen tanks.

Shark

A marine fish known for its predatory behavior, but in business, it can refer to someone who adopts aggressive, often unethical practices to succeed.