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10.A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. (Because the
10.A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms, so effectively a 1/15, net 60.) What is the retailer's effective cost of trade credit? Pick the closest. a. 7.35% b. 8.21% c. 8.49% d. 9.01% e. 9.45%
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