Multiple Choice
Freeman Builders, Inc.buys on terms of 2/15, net 30.It does not take discounts, and it typically pays 60 days after the invoice date.Net purchases amount to $720,000 per year.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
A) 10.86%
B) 12.07%
C) 13.41%
D) 14.90%
E) 16.55%
Correct Answer:
Verified
Correct Answer:
Verified
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