Your Company Has Been Offered Credit Terms of 4/30, Net

question 32

Multiple Choice

Your company has been offered credit terms of 4/30, net 90 days. What will the nominal annual cost of trade credit be if you pay 100 days after the purchase? (Assume a 365-day year.)

• A) 20.64%
• B) 21.73%
• C) 22.81%
• D) 23.95%

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Definitions:

Academic Achievement

The extent to which a student, teacher, or institution has achieved their short or long-term educational goals.

Individualist Cultures

Cultures that emphasize the importance of personal goals, autonomy, and individual achievement over group goals.

Sense Of Self

A person's understanding and perception of their own identity and individuality.

Object-Relations School

A psychodynamic approach that emphasizes the importance of the infant’s first 2 years of life and the baby’s formative relationships, especially with the mother.