Suppose you purchase goods on terms of 2/10, net 50. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.)
A)2 percent
B)20.2 percent
C)10.2 percent
D)18.6 percent

Name: Suppose you purchase goods on terms of 2/10, net 50. Taking compounding into account, what annual rate of interest is implied by the cash discount? (Assume a year has 365 days.) A)2 percent B)20.2 percent C)10.2 percent D)18.6 percent
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Question

Quizplus · Accepted Answer

The Answer is B

Suppose You Purchase Goods on Terms of 2/10, Net 50