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Bumpas Enterprises Purchases $4,562,500 in Goods Per Year from Its

Question 91

Multiple Choice

Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15,net 50.If the firm chooses to pay on time but does not take the discount,what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)


A) 20.11%
B) 21.17%
C) 22.28%
D) 23.45%
E) 24.63%

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