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A business buys on terms of 2/10, net 45. It does not take discounts, and it typically pays 50 days after the invoice date. What

A business buys on terms of 2/10, net 45. It does not take discounts, and it typically pays 50 days after the invoice date. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

a. 18.62%

b. 16.55%

c. 21.28%

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