A buyer is offered terms of 2/10 net 45, but the seller typically allows payment as late as day 55 with no penalty. Given this information, what is the effective cost to this buyer for not taking the discount? Group of answer choices . A) 13.55% B) 15.55% C) 16.55% D) 14.55%
A buyer is offered terms of 2/10 net 45, but the seller typically allows payment as late as day 55 with no penalty. Given this information, what is the effective cost to this buyer for not taking the discount? Group of answer choices . A) 13.55% B) 15.55% C) 16.55% D) 14.55%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A buyer is offered terms of 2/10 net 45, but the seller typically allows payment as late as day 55 with no penalty. Given this information, what is the effective cost to this buyer for not taking the discount? Group of answer choices .
A) 13.55%
B) 15.55%
C) 16.55%
D) 14.55%
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