XYZ Company has credit terms of 2/15 net 45. Customers should take the discount and pay in 15 days if they CANNOT earn more than ________ (EAR) on their investments
A) 17.81%
B) 27.86%
C) 24.83%
D) 16.55%
Answer: B
Explanation: B) EAR = - 1 = = 27.86%
Business
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