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

question 53

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)44.59%
• B)49.76%
• C)36.12%
• D)23.37%

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Definitions:

Class Exception

A type of object in Java that represents errors or issues that occur during the execution of a program.

Subclasses

Classes that derive from a superclass and can inherit its properties and methods, potentially overriding them.

NoSuchElementException

An exception thrown in Java when one attempts to access an element that does not exist, often in the context of iterators.