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    Exam 16: Short-Term Business Financing
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    The Approximate Effective Cost (EC) of Financing the Discount Price
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The Approximate Effective Cost (EC) of Financing the Discount Price

Question 21

Question 21

Multiple Choice

The approximate effective cost (EC) of financing the discount price of trade credit under terms 2/10, net/30 using a 360 day year is:


A) 25%
B) 30.1%
C) 36.737.2%
D) 42.5%

Correct Answer:

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