Abc extends credit to its customers on terms of 210 net 40


Question: ABC extends credit to its customers on terms of 2/10, net 40. Assuming a customer pays the invoice at the end of the costly trade credit period, what is the annualized cost of trade credit? (Show your answer in decimal form to four places, e.g., 12.34% would be 0.1234)

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Finance Basics: Abc extends credit to its customers on terms of 210 net 40
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