A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. What is the effective annual cost of not taking this discount? (Assume a 365-day year.) * 45.50% O 44.30% O 37.39% O 30.00% O 32.25%

A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. What is the effective annual cost of not taking this discount? (Assume a 365-day year.) * 45.50% O 44.30% O 37.39% O 30.00% O 32.25%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A firm is offered trade credit terms of 3/15, net 30 days. The firm does not
take the discount, and it pays after 50 days. What is the effective annual
cost of not taking this discount? (Assume a 365-day year.) *
O 45.50%
44.30%
O 37.39%
30.00%
32.25%

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