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A Vendor Offers Terms of 3/10,n/30

Question 201

Multiple Choice

A vendor offers terms of 3/10,n/30.What is the ANNUAL interest rate the vendor is charging a buyer who does not pay within 10 days? (Assume there are 360 days in the year.


A) 3%
B) 36%
C) 54%
D) 108%

Correct Answer:

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