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A buyer failed to take advantage of the vendor's credit terms of 1/10, n/45, but instead...

A buyer failed to take advantage of the vendor's credit terms of 1/10, n/45, but instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is: rev: 03_21_2018_QC_CS-122342 Multiple Choice 10.6% 10.4% 9.0% 13.4% 6.6%

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Answer is Opton B) 10.4% 10 days Discount term Payment Net days Discount % 45 days 35 days Full year calcuation (365/35)*1% 1

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