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Firm Buys on Terms of 3/15, Net 45

Question 45

Multiple Choice

firm buys on terms of 3/15, net 45.It does not take the discount, and it generally pays after 60 days.What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?


A) 25.09%
B) 27.59%
C) 30.35%
D) 33.39%
E) 36.73%

Correct Answer:

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