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Scott Company Purchased Merchandise with an Invoice Price of $3,000

Question 123

Multiple Choice

Scott Company purchased merchandise with an invoice price of $3,000 and credit terms of 1/10, n/30.Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?


A) 20%
B) 24%
C) 18%
D) 36%

Correct Answer:

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