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A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date.

A company buys on terms of 2/15, net 30 days. It does not take discounts, and it typically pays 35 days after the invoice date. Net purchases amount to P720,000 per year. What is the nominal annual cost of its non-free trade credit? (Assume a 365-day year.) Show your complete solution.

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