I REALLY need help with the question! FAST!?

1 ⤊

I REALLY need help with the question! FAST!?

A business makes its purchases under terms of 2/10 net 30. If the firm forgoes the discount and pays according to the terms of trade credit, the firms’ cost (APR) of using this credit is (assume 365 days in a year)
a. 26.67%
b. 0% because it pays on time
c.37.24%
d.27%

Thank you in advance for any help you can give!

2006-06-20 08:36:28 · 4 answers · asked by shacklefordfamily 1 in Business & Finance ➔ Other - Business & Finance

4 answers

B is the answer. If they pay before interest kicks in, no cost other than the goods themselves are involved. "0" percent APR.

2006-06-20 08:40:38 · answer #1 · answered by steven s 2 · 1⤊ 0⤋

i would say b. 0%

2006-06-20 08:40:29 · answer #2 · answered by Anonymous · 0⤊ 0⤋

B sir!

2006-06-20 08:41:58 · answer #3 · answered by ? 5 · 0⤊ 0⤋

2006-06-20 08:39:41 · answer #4 · answered by sam21462 5 · 0⤊ 0⤋