Multiple Choice
MoJo Corporation purchases goods on credit with terms of 4.5/15, net 40. Which of the following is the annual cost (APR) of the non-free trade credit if the firm pays on Day 40 (i.e., the cost of forgoing the discount) ? In your computations, assume there are 360 days in a year.
A) 42.41%
B) 67.85%
C) 0.00%
D) 30.84%
E) 113.09%
Correct Answer:
Verified
Correct Answer:
Verified
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