Suppose you purchase goods on terms of 3/10, net 60. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
A)32 percent
B)25 percent
C)91 percent
D)28.2 percent

Question

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The Answer of Suppose you purchase goods on terms of 3/10, net 60. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
A)32 percent
B)25 percent
C)91 percent
D)28.2 percent

Suppose You Purchase Goods on Terms of 3/10, Net 60