A firm buys on terms of 28 net 45 days it does not take


A firm buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)

15.89%
19.86%
19.70%
17.64%
13.19%

 

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Finance Basics: A firm buys on terms of 28 net 45 days it does not take
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