What Is the Effective Cost of Credit Terms of 3/5

question 71

Multiple Choice

What is the effective cost of credit terms of 3/5 net 45 if the firm stretches the accounts payable to 60 days?

• A)12.9%
• B)35.6%
• C)39.9%
• D)22.4%
• E)42.7%

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Definitions:

Neuronal functioning

The operational activities of neurons, including signal transmission and communication within the brain and nervous system.

Breakdown of myelin

The deterioration or destruction of myelin, the protective sheath covering nerve fibers, which can lead to neurological disorders and impairments in signal transmission.

Reduction in dendrites

A process involving the decrease in the branched projections of neurons, potentially affecting neural connectivity and function.

American Academy of Pediatrics

A professional organization advocating for the health and well-being of infants, children, adolescents, and young adults, providing guidelines and research on pediatric care.