A Firm Buys on Terms of 3/15,net 45

question 70

Multiple Choice

A firm buys on terms of 3/15,net 45.It does not take the discount,and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit,based on a 365-day year?

• A)25.09%
• B)27.59%
• C)30.35%
• D)33.39%
• E)36.73%

Comprehend the definitions and implications of various employment statuses, including full employment and unemployment types.

Identify and describe the different phases of the business cycle.

Calculate the real rate of interest and understand the relationship between nominal interest rates, real interest rates, and inflation.

Recognize the impact of economic policies and conditions on unemployment rates and inflation since the 1970s.

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Definitions:

McDougall

A psychologist known for his contributions to the field of social psychology and the concept of instinct theory.

Instinct

Innate drive or impulse, genetically transmitted.

Attachments

Emotional bonds formed between individuals, crucial for personal development and influencing later relationships.

Reconciliation

The process of restoring friendly relations or making one's beliefs or actions consistent with another.