Hi, I have this question but it seems I'm doing something wrong. Would you please verify my answer and help me. Thanks.

Question:

A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year?

Solution:

Computation of the Nominal Annual Percentage Cost of its Non Free Trade Credit

Nominal percentage cost =x= 21.71%.

Hence the Nominal Annual Percentage Cost of its Non Free Trade Credit is 21.71%