Howes Inc.purchases $4, 562, 500 in goods per year from its sole supplier on terms of 2/15, net 50.If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)

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11ea1b84_8bd0_2b95_a54a_a1e630b81b3c_TB3581_00 EAR = [1 + Disc.%/(100 - Disc.%)][³??/??????? ???? ? ????.???????] -1 = 23.45%

Howes IncPurchases $4, 562, 500 in Goods Per Year from Its