Cash Discount Terms of 2/10, Net 60 on an Invoice

question 139

Multiple Choice

Cash discount terms of 2/10, net 60 on an invoice would-in effect-amount to borrowing at an annual interest rate of about ________ percent if the buyer did not pay the invoice for 60 days.

• A) 22
• B) 72
• C) 14
• D) 18
• E) 36

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