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    Practical Financial Management Study Set 1
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    Exam 16: The Management of Working Capital
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    Calculate the Effective Interest Rate of a 2/5, Net 25
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Calculate the Effective Interest Rate of a 2/5, Net 25

Question 88

Question 88

Multiple Choice

Calculate the effective interest rate of a 2/5, net 25 terms of sale, using a 365-day year.


A) 24.5%
B) 36.5%
C) 42.5%
D) 55.5%

Correct Answer:

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