What Is the Effective Annual Cost of Credit Terms of 3/15

question 88

Multiple Choice

What is the effective annual cost of credit terms of 3/15 net 30, if the firm stretches the accounts payable to 60 days?

• A) 1.7%
• B) 3.35%
• C) 12.65%
• D) 28.03%

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Definitions:

Exercise Program

A planned, structured set of physical activities designed to achieve specific fitness or health goals.

Maximum

The highest or greatest amount, level, or degree that can be attained or recorded.

Heart Rate

The number of heartbeats per minute, an indicator of cardiovascular health.

Activity Intolerance

A state in which an individual has insufficient physiological or psychological energy to endure or complete required or desired daily activities.