A buyer is offered terms of 2/10 net 45, but the seller typically allows payment as late as day 55 with no penalty. Given this information, what is the effective cost to this buyer for not taking the discount? Group of answer choices . A) 13.55% B) 15.55% C) 16.55% D) 14.55%

A buyer is offered terms of 2/10 net 45, but the seller typically allows payment as late as day 55 with no penalty. Given this information, what is the effective cost to this buyer for not taking the discount? Group of answer choices . A) 13.55% B) 15.55% C) 16.55% D) 14.55%

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter16: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 8P: Captain Whitman Ship Supplies offers terms of 3/15, net 45. If a purchaser takes the discount and...

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Concept explainers

Trade Credit

Answer- a- Before Shipping of goods

Question

A) 13.55%

B) 15.55%

C) 16.55%

D) 14.55%

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