Lima Corporation Makes Purchases on Credit, and Its Suppliers Grant

Multiple Choice

Lima Corporation makes purchases on credit, and its suppliers grant it credit terms of 2/15, net 30. Assuming there are 360 days in a year, the effective annual rate of non-free trade credit if the firm did not take discounts but did pay on the due date is:

A) 17.53%.
B) 78.87%.
C) 52.78%.
D) 27.42%.
E) 62.36%.