Problem:
A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days.
Requirement:
Question: What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?
- 25.09%
- 27.59%
- 30.35%
- 33.39%
- 36.73%
Note: Show supporting computations in good form.