What Is the Effective Cost of Credit Terms of 2/10,net

question 112

Multiple Choice

What is the effective cost of credit terms of 2/10,net 30 if the firm stretches the accounts payable to 45 days?

• A)49.76%
• B)36.12%
• C)23.37%
• D)44.59%
• E)29.12%

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Definitions:

Nymph

An immature form of some invertebrates, particularly insects, which undergoes gradual metamorphosis before reaching its adult stage.

Closed Circulatory System

A circulatory system where blood is enclosed within vessels and circulates unidirectionally from the heart through the body and back to the heart.

Arthropod Success

The evolutionary success of arthropods, characterized by their adaptable exoskeleton, segmented bodies, and jointed limbs, making them the most diverse group of animals.

Jointed Appendages

Refers to appendages with joints, enabling movement, commonly found in arthropods such as insects, spiders, and crustaceans.