What is the annual interest rate of a sales discount of 2/10, n/30?

Question

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The annual interest rate of a sales discount of 2/10, n/30 is 36.5%. This is because the discount is 2% if the invoice is paid within 10 days, and the full amount is due within 30 days. This means that the buyer has 20 days to pay the invoice, and if they do not, they will be charged the full amount. The annual interest rate is calculated by dividing the discount by the number of days in the credit period, and then multiplying by 360. In this case, the annual interest rate is 2% / 20 days * 360 = 36.5%.

What Is the Annual Interest Rate of a Sales Discount