Calculate the APR for an invoice that has the terms 1/20 net 45.
A) 14.75%
B) 18.80%
C) 12.25%
D) 15.65%
E) 10.35%

Name: Calculate the APR for an invoice that has the terms 1/20 net 45. A) 14.75% B) 18.80% C) 12.25% D) 15.65% E) 10.35%
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Question

Quizplus · Accepted Answer

APR = Periodic rate × number of periods
Periodic rate = 11ea7fdb_fc40_7741_a768_9f84cbf453a2_TB2902_11 = .0101
number of periods = 11ea7fdb_fc40_7742_a768_29c6c27b44b6_TB2902_11 = 14.6
APR = .0101 × 14.6 = 14.75%

Calculate the APR for an Invoice That Has the Terms