The company you just started has been offered credit terms of 4/30, net 90 days.What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)

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11ea1b84_8bd0_2b94_a54a_81453664658f_TB3581_00 Nom.% cost = Disc.%/(100 - Disc.%)×(365/(Actual days - Disc.days)= 16.90%

The Company You Just Started Has Been Offered Credit Terms