Durham Cement,Inc

Multiple Choice

Durham Cement,Inc.buys on terms of 2/15,net 30 days.It does not take discounts,and it typically pays 60 days after the invoice date.Net purchases amount to $720,000 per year.What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.)

A) 15.73%
B) 16.55%
C) 17.38%
D) 18.25%