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%
Correct Answer:
Verified
Correct Answer:
Verified
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