Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15,net 55.If the firm chooses to pay on time but does not take the discount,what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year. )

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11ea856c_8b57_7c43_9aec_ad1eb491b189_TB1222_00 ? EAR = [ 1 + Disc %/(100 - Disc %)] ^{[365/(Actual days - Disc.Period)]} - 1 = 20.24% ?

Bumpas Enterprises Purchases $4,562,500 in Goods Per Year from Its