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A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days.

A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. What is the effective annual cost of not taking this discount? (Assume a 365-day year.)

A. 37.39%

B. 44.30%

C. 45.50%

D. 30.00%

E. 32.25%

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