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Effective rate of interest the customer

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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. 42.31%

B. 44.86%

C. 39.27%

D. 40.54%

E. 45.38%

Reference no: EM131493557

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