Question
SmallBiz offers its credit customers terms of 3/10 net 60. What is the effective cost (as a % per annum interest rate) to SmallBiz for
SmallBiz offers its credit customers terms of 3/10 net 60. What is the effective cost (as a % per annum interest rate) to SmallBiz for offering this discount (assume 365 days per year)?
Select one:
a. 109.5%
b. 3.00%
c. 11.29%
d. 22.58%
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Intermediate Accounting 2014 FASB Update
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
15th edition
978-1118938782, 111893878X, 978-1118985311, 1118985311, 978-1118562185, 1118562186, 978-1118147290
