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: C

Business

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