If Quick Foregoes the Discount but Does Not Pay for Its

question 70

Multiple Choice

If Quick foregoes the discount but does not pay for its purchases until day 40, what is Quick's effective cost of using this source of credit? Assume that no penalty is incurred for late payment.

• A) 18.25%
• B) 36.73%
• C) 24.83%
• D) 24.49%

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Definitions:

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