3/5, net 30 means You can save 3% if paid 26 days earlier ( 30 - 5)
EAR = (1+r)^n - 1
= ( 1 + 0.03)^14.6 - 1
= 1.03^14.6 - 1
= 1.5396 - 1
= 0.5396 i.e 53.96%
Option B is correct.
Difference may be due to rounding off Problem.
Assume the trade credit terms offered to your firm by your suppliers are 3/5, Net 30....
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