Suppose you purchase goods on terms of 1/10, net 30. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
A)9.6 percent
B)9.2 percent
C)20.1 percent
D)44.6 percent

Question

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The Answer of Suppose you purchase goods on terms of 1/10, net 30. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
A)9.6 percent
B)9.2 percent
C)20.1 percent
D)44.6 percent

Suppose You Purchase Goods on Terms of 1/10, Net 30