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What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90
What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90 days? 365 days in one year
a. 26.4%
b. 12.8%
c. 32.2%
d. 5.3%
e. 44.6%
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