A Firm Buys on Terms of 3/15,net 45

question 110

Multiple Choice

A firm buys on terms of 3/15,net 45.It does not take the discount,and it generally pays after 110 days.What is the nominal annual percentage cost of its non-free trade credit,based on a 365-day year?

• A) 9.03%
• B) 13.78%
• C) 10.69%
• D) 11.88%
• E) 11.17%

---

Definitions:

Homophobic

Displaying or characterized by prejudice, discrimination, or antipathy towards homosexual people.

Educated

Having acquired knowledge, skills, and learning through formal schooling, training, or self-study.

Homosexual Tendency

A predisposition or inclination toward experiencing romantic or sexual attraction to individuals of the same sex.

Sociologists

Experts in the study of society who analyze the structures, systems, and dynamics of social interactions.