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A Firm Buys on Terms of 3/15,net 45 Days

Question 38

Multiple Choice

A firm buys on terms of 3/15,net 45 days.It does not take the discount,and it generally pays after 65 days.What is the nominal annual cost of its non-free trade credit,based on a 365-day year?


A) 22.58%
B) 23.71%
C) 24.89%
D) 26.14%

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