What effective interest rate is charged to a purchaser receiving terms of 5/10, net 90 if the purchaser avoids the discount and pays in 90 days?
A) 20.00%
B) 26.37%
C) 24.93%
D) 22.81%
Ans: B) 26.37%
Business
A) 20.00%
B) 26.37%
C) 24.93%
D) 22.81%
Ans: B) 26.37%