-If a company has the opportunity to take a discount of 2/10, n/30 but must borrow money at an annual rate of 16%, what would be the net advantage of taking the discount?
A) 8.3%
B) 8.8%
C) 20.5%
D) 21.2%

Name: -If a company has the opportunity to take a discount of 2/10, n/30 but must borrow money at an annual rate of 16%, what would be the net advantage of taking the discount? A) 8.3% B) 8.8% C) 20.5% D) 21.2%
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Question

Quizplus · Accepted Answer

Calculation: {[($2 ÷ $98) ÷ 20 days] × 365 days} - .16 = .212.

-If a Company Has the Opportunity to Take a Discount