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    Exam 5: The Purchase and Sale of Inventory
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    A Vendor Offers Terms of 4/10,n/30
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A Vendor Offers Terms of 4/10,n/30

Question 224

Question 224

Multiple Choice

A vendor offers terms of 4/10,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) 4%
B) 72%
C) 54%
D) 144%

Correct Answer:

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