A firm is offered trade credit terms of 2/8,net 45.The firm does not take the discount,and it pays after 58 days.What is the effective annual cost of not taking this discount? (Note: Do not use the approximate cost. )
A) 21.63%
B) 13.35%
C) 22.95%
D) 15.65%
E) 18.70%
Correct Answer:
Verified
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