On a 365-day basis, if payment is made on the twentieth day under trade creditterms of 2/10, net 30. How many days is the effective borrowed fund? *O 20 daysO 30 daysO 50 daysO 5 daysO 10 days

Trade credit: Trade credit refers to the business to business agreement through which a customer can…

Answered: On a 365-day basis, if payment is made…

On a 365-day basis, if payment is made on the twentieth day under trade cred terms of 2/10, net 30. How many days is the effective borrowed fund? * O 20 days O 30 days O 50 days O 5 days O 10 days

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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Question

On a 365-day basis, if payment is made on the twentieth day under trade credit
terms of 2/10, net 30. How many days is the effective borrowed fund? *
O 20 days
O 30 days
O 50 days
O 5 days
O 10 days

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