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What is the effective annual percentage cost of the non-free

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Question 1: Howes Inc. purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its non-free trade credit? (Assume a 365-day year.)

a. 22.28%

b. 23.45%

c. 20.11%

d. 21.17%

e. 24.63%

Reference no: EM132503283

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