What is the effective annual cost of credit terms of 3/15 net 30, if the firm stretches.the accounts payable to 60 days?A) 28.03%B) 1.7%OC) 12.65%OD) 3.35%

Discount rate=3%Discount period is 15 daysCredit period is 60 days.

Answered: the accounts payable to 60 days? A)…

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

Problem 1PS

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the accounts payable to 60 days? A) 28.03% OB) 1.7% OC) 12.65%