A Firm Buys on Terms of 2/8,net 45 Days,it Does

question 115

Multiple Choice

A firm buys on terms of 2/8,net 45 days,it does not take discounts,and it actually pays after 85 days.What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year. )

• A) 10.05%
• B) 10.55%
• C) 7.84%
• D) 8.64%
• E) 9.55%

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Definitions:

Moral Development

The process through which individuals acquire the standards of right and wrong that guide their behavior within society.

Morally

Relating to principles of right and wrong behavior; ethical considerations in actions and decision-making.

Criticism

The act of expressing disapproval or finding fault in someone or something, often involving analysis and judgment.

Cross-cultural Researchers

Scientists who study the psychological, social, and cultural factors that influence behavior, norms, and values across different societies and cultural backgrounds.