Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 55. 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.)

A. 24.49%
B. 20.24%
C. 19.03%
D. 18.62%
E. 17.00%


Answer: B

Business

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