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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%](https://content.bartleby.com/qna-images/question/b12dafa6-0338-4e33-8ce2-fa51ba1d8aff/9dc5a24c-a25b-4da6-b75a-1fa95b0230da/6y8mjuuv_thumbnail.jpeg)
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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