If a buyer does not take advantage of a supplier's credit terms of 2/10, n/30, and instead pays the invoice in full at the end of 30 days, by not taking the discount the buyer loses the equivalent of 36.5% annual interest on the amount of the purchase.

Answer the following statement true (T) or false (F)


True

(365 days/20 days) × 2% = 36.5%

Business

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