Question
As a manager of your own business one of your suppliers sent a truckload of inventories you ordered. Your supplier normally gives you 30 days
As a manager of your own business one of your suppliers sent a truckload of inventories you ordered. Your supplier normally gives you 30 days to make good on the payment on accounts payable (goods with 30 days credit), but on this occasion, your supplier needed the cash as early as possible, but my the latest 10 days upon the receipt of the shipment. In other words, the goods were accompanied by the invoice and the condition of: "2/20 net 60." You would like to take the discount, but you are also strapped for cash so you are seeking a short term loan from your local banker, the highest financially acceptable rate would be: Which of the following interest as an annualized % on the loan would be financially acceptable to you given the discount you are offered
a. 18.6%
b. 20.5%
c. 17.6%
d. 22,5%
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