A firm sells to its customers on credit terms of 2/15, net 35. What is the effective cost of the trade credit it extends to its customers?
A) 36.50%
B) 37.24%
C) 39.85%
D) 42.93%
E) 44.59%

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The Answer of A firm sells to its customers on credit terms of 2/15, net 35. What is the effective cost of the trade credit it extends to its customers?
A) 36.50%
B) 37.24%
C) 39.85%
D) 42.93%
E) 44.59%

A Firm Sells to Its Customers on Credit Terms of 2/15