company has been offered credit terms of 4/30, net 90 days.What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)
A)16.05%
B)16.90%
C)17.74%
D)18.63%
E)19.56%

Question

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The Answer of company has been offered credit terms of 4/30, net 90 days.What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)
A)16.05%
B)16.90%
C)17.74%
D)18.63%
E)19.56%

Company Has Been Offered Credit Terms of 4/30, Net 90