FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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5. A firm is offered trade credit terms of 3/15, net 45 days. The firm does not take the discount, and it pays after 67 days.
What is the nominal annual cost of not taking the discount? (Assume a 365-day year.)
A. 21.71%
C. 22.95%
E. 24.52%
B. 22.07%
D. 23.48%
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Transcribed Image Text:5. A firm is offered trade credit terms of 3/15, net 45 days. The firm does not take the discount, and it pays after 67 days. What is the nominal annual cost of not taking the discount? (Assume a 365-day year.) A. 21.71% C. 22.95% E. 24.52% B. 22.07% D. 23.48%
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