Swifty Company purchased merchandise with an invoice price of $3500 and credit terms of 3/10, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms? O 60% O 72% O 54% O 36%

Swifty Company purchased merchandise with an invoice price of $3500 and credit terms of 3/10, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms? O 60% O 72% O 54% O 36%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Swifty Company purchased merchandise with an invoice price of $3500 and credit terms of 3/10, n/30. Assuming a 360-day year, what
is the implied annual interest rate inherent in the credit terms?
O 60%
O 72%
O 54%
O 36%

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