Question
Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the terms, 3/10 net 40. This customer normally pays on
Yesterday, Smiley Company sold $22,500 of merchandise on credit. The invoice was sent today with the terms, 3/10 net 40. This customer normally pays on the net date. What is the effective rate of interest the customer is paying by not taking the discount? Assume a 365-day year.
| A. | 45.38% | |
| B. | 44.86% | |
| C. | 42.31% | |
| D. | 40.54% | |
| E. | 39.27% |
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Financial Management For Public Health And Not For Profit Organizations
Authors: Steven A. Finkler
1st Edition
0130176141, 9780130176141
