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Question
Andrews Corporation buys on terms of 2/8, net 45 days, it does not take discounts, and it actually pays after 58 days. What is the effective annual percentage cost of its non-free trade credit? (Use a 365-day year.)a. 14.34%
b. 15.10%
c. 15.89%
d. 16.69%
e. 17.52%
Answer
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