A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What's the implicit interest if a buyer does not take the cash discount? _____

$250

$300

$500

$800

Based on the information from Question 45, what's the effective annual rate (EAR) if the buyer does not take the cash discount?_____

		15.12%.
		18.36%.
		10.12%.
		20.24%.