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Question
A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?a. 17.58%
b. 15.00%
c. 18.55%
d. 16.13%
e. 13.22%
Answer
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