Question
Carp Co is due to receive goods costing $1,500.The terms of trade state that the payment must be received in4months. However a discount of2%will be
Carp Co is due to receive goods costing $1,500. The terms of trade state that the payment must be received in 4 months. However a discount of 2% will be given for payment in 1 month.
Which of the following is the annual percentage cost of ignoring the discount and paying in 4 months?
6%
6.12%
8%
8.16%
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
