A Firm Decides to Stretch Its Accounts Payable,resulting in an Effective

Multiple Choice

A firm decides to stretch its accounts payable,resulting in an effective annual cost of credit of 22.4%,under terms of 3/15 net 30.When is the firm paying its accounts payable?

A) 70 days
B) 65 days
C) 60 days
D) 55 days
E) 50 days