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Grayson Company Purchased Merchandise with an Invoice Price of $2,000

Question 224

Multiple Choice

Grayson Company purchased merchandise with an invoice price of $2,000 and credit terms of 2/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?


A) 2%
B) 12%
C) 24%
D) 36%

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