Evaluate the nominal annual cost of trade

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Reference no: EM1311069

Nominal annual cost of trade credit.

Your company has been offered credit terms of 4/30, net 90 days. What will the nominal annual cost of trade credit be if you pay 100 days after the purchase? (Assume a 365-day year.)

a) 20.64%

b) 21.73%

c) 22.81%

d) 23.95%

e) 25.15%

Reference no: EM1311069

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