The Effective Annual Cost of Not Taking Advantage of the 1/10,net

question 39

Multiple Choice

The effective annual cost of not taking advantage of the 1/10,net 60 terms offered by a supplier is

• A) 1.50%.
• B) 5.37%.
• C) 6.69%.
• D) 7.27%.

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Definitions:

Absolute Value

The distance of a number from zero on the number line, without considering its direction; it’s always non-negative.

Algebraic Expression

An expression composed of variables, numbers, and arithmetic operations.

Decreased

To become smaller or less in size, quantity, intensity, or degree.

Equivalent Phrase

A term or expression that has the same meaning as another, especially in a different mathematical context.