The company you just started has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non-free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.)

A. 16.05%
B. 16.90%
C. 17.74%
D. 18.63%
E. 19.56%


Answer: B

Business

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What will be an ideal response?

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Indicate whether the statement is true or false

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