Compute the annual interest rate implicit in the sales discount I saw this answer is on the site- but when I tried doing it like that- the answer was wrong- can no longer check my answer and I am not understanding how you got your's! Required information[The following information applies to the questions displayed below.]Clark's Landscaping bills customers subject to terms 2/25, n/60.Required:1. Compute the annual interest rate implicit in the sales discount. (Use 365 days in a year. Do not round intermediate calculations.Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)Annual interest rate20.86 %

Interest rate is a rate charged by the lender from the borrower on the amount borrowed by the…

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Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 4P: Gifts Galore Inc. borrowed 1.5 million from National City Bank. The loan was made at a simple annual...

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Compute the annual interest rate implicit in the sales discount

I saw this answer is on the site- but when I tried doing it like that- the answer was wrong- can no longer check my answer and I am not understanding how you got your's!

Required information
[The following information applies to the questions displayed below.]
Clark's Landscaping bills customers subject to terms 2/25, n/60.
Required:
1. Compute the annual interest rate implicit in the sales discount. (Use 365 days in a year. Do not round intermediate calculations.
Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
Annual interest rate
20.86 %

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