What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90 days?
A) 20.00%
B) 22.81%
C) 24.93%
D) 26.37% 5/95 = 5.26% implicit interest for 80 days.
Correct Answer:
Verified
Q4: A firm offered 3/10,net 30 as terms
Q28: What is the break-even probability of collection
Q38: The purpose of credit analysis is to:
A)Reconcile
Q42: A purchaser was offered terms of trade
Q43: Which of the following would be least
Q44: Which of the following financial ratios is
Q49: Which of the following credit agreements will
Q53: Which of the following strategies would continue
Q61: In general, a firm's credit policy should
Q71: According to credit experts, a full credit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents