Scott Company purchased merchandise with an invoice price of $3,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?
A) 20%
B) 24%
C) 18%
D) 36%

Question

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The Answer of Scott Company purchased merchandise with an invoice price of $3,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?
A) 20%
B) 24%
C) 18%
D) 36%

Scott Company Purchased Merchandise with an Invoice Price of $3,000