2 TCO C) Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its nonfree trade credit if it pays 120 days after the purchase? (Assume a 365-day year.) a. 16.05 b. 16.90 C 17.74 d. 18.63 e. 19.56

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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2 (TCO C) Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of
its nonfree trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)
a. 16.05%
b. 16.90%
c. 17.74%
d. 18.63%
e. 19.56%
Transcribed Image Text:2 (TCO C) Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its nonfree trade credit if it pays 120 days after the purchase? (Assume a 365-day year.) a. 16.05% b. 16.90% c. 17.74% d. 18.63% e. 19.56%
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