Cost of foregoing cash discount

Reference no: EM13116114

Syntech is offered credit terms of 2/10, net 40, but decides to forego taking the cash discount and pays on the 45th day. What is Syntech's cost of foregoing the cash discount? [AFC=(Interest Paid/usable funds)(365/maturity(days)]

The four answers that I have are one of the following:

a. 24.83%

b. 21.28%

c. 18.62%

d. none of the above

Reference no: EM13116114

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