Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 2/10, n/30.Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?
A)4%
B)24%
C)36%
D)72%

Question

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The Answer of Farwell Company purchased merchandise with an invoice price of $2,000 and credit terms of 2/10, n/30.Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?
A)4%
B)24%
C)36%
D)72%

Farwell Company Purchased Merchandise with an Invoice Price of $2,000