The Company You Just Started Has Been Offered Credit Terms

question 105

Multiple Choice

The company you just started has been offered credit terms of 4/30, net 90 days.What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)

• A) 16.05%
• B) 16.90%
• C) 17.74%
• D) 18.63%
• E) 19.56%

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Definitions:

Biological Treatment

Medical treatments for mental disorders that affect the brain's chemical environment, including medication and electroconvulsive therapy.

Therapeutic Technique

Methods or strategies used in therapy to treat physical, psychological, or social dysfunction.

Prognosis

An assessment or prediction about the likely outcome or course of a disease or condition.

Medication

Substances used to diagnose, treat, or prevent disease and improve health through pharmacological action.