Wayne Company just purchased merchandise costing $700,which has payment terms of 2/10,n/45.Wayne Company is uncertain whether to take advantage of the discount.What is the annual interest rate implicit in the cash discount,assuming a 365-day year?
A) 2) 0%
B) 3) 0%
C) 16.2%
D) 20.9%
E) 21.3%
Correct Answer:
Verified
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