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What Effective Annual Rate of Interest Is Being Charged to a Customer

Question 30

Multiple Choice

What effective annual rate of interest is being charged to a customer who is granted credit terms of 3/15,net 45 when the customer foregoes the discount and pays on the last date prior to being delinquent?


A) 44.86%
B) 48.29%
C) 37.67%
D) 41.84%

Correct Answer:

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