A firm offers credit terms of 2/15, net 45. What effective annual interest rate does the firm earn when a customer forgoes the discount?
A) 18.67 percent
B) 20.45 percent
C) 23.37 percent
D) 25.34 percent
E) 27.86 percent

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The Answer of A firm offers credit terms of 2/15, net 45. What effective annual interest rate does the firm earn when a customer forgoes the discount?
A) 18.67 percent
B) 20.45 percent
C) 23.37 percent
D) 25.34 percent
E) 27.86 percent

A Firm Offers Credit Terms of 2/15, Net 45