Suppose You Purchase Goods on Terms of 2/10, Net 50

question 37

Multiple Choice

Suppose you purchase goods on terms of 2/10, net 50. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)

• A)2 percent
• B)20.2 percent
• C)10.2 percent
• D)18.6 percent

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Definitions:

RLC Parallel Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) all connected in parallel with each other, affecting the total impedance of the circuit.

Applied Voltage

The electrical potential difference provided by an external source that is applied across a component or circuit.

Inductance

The property of an electrical conductor by which a change in current in the conductor induces a voltage in both the conductor itself and in any nearby conductors by electromagnetic induction.

RLC Series Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in a single line, forming a sequence of elements.