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Your Company Has Been Offered Credit Terms of 4/30, Net

Question 32

Multiple Choice

Your company has been offered credit terms of 4/30, net 90 days. What will the nominal annual cost of trade credit be if you pay 100 days after the purchase? (Assume a 365-day year.)


A) 20.64%
B) 21.73%
C) 22.81%
D) 23.95%

Correct Answer:

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