The firm grants credit terms of 1/5, net 30 on purchases of $1,000 or greater. What is

Fantastic news! We've Found the answer you've been seeking!

Question:

The firm grants credit terms of 1/5, net 30 on purchases of $1,000 or greater. What is the effective rate of the discount ?

A. 15.80%

B. 19.03%

C. 18.80%

D. 12.27%

E. 17.24%

Related Book For answer-question

Economics

ISBN: 978-0273721307

7th edition

Authors: John Sloman, Alison Wride

See More Books

Posted Date: Sep 11, 2020 06:15 AM

See More Questions

1. Determine the main factors that you believe are important for organizations to consider when evaluating trends and predicting the business environment in future years. Provide a rationale for your...
Choose two industries that you believe are very different. Identify factors used in those industries that in the short run are (a) fixed; (b) variable.
Identify several items that you believe are included in the prevailing DIF model.
On 13 May 2014, Ruben acquired 400 shares in Xantan Ltd at a cost of 1,800. On 17 July 2020, the company made a 1 for 8 bonus issue and (on the same day) Ruben sold his bonus shares for 7 each....
A sociologist at Grant MacEwan University selects 12 men and 12 women from each of 4 English classes.
1. Write a program in python to get the number of rows using GUI. If the user entered less than 4 rows, display the message not to enter less than 4 rows and allow the user to enter again. For...
To calculate $r$ using MINITAB when the $x$ values are in $C 1$ and the $y$ values are in $C 2$, use Also, you can make a scatter plot using the plot procedure in Exercise 11.22. Use the...
Classifying variances as favorable or unfavorable Required Indicate whether each of the following variances is favorable or unfavorable. The first one has been done as an example. Item to Classify...
If following flowchart was executed, what is the final value of variable x? Start Initialize x-10, k-3 k < 5 COMPUTE x=x+k T COMPUTE x=x+5 End
Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This...
Prepare both weekly and monthly profit formulas so that Val has a good idea about her current profit situation. Also, given her sales for the month, tell her how much her ideal expense should have...
Which one of the parameters below can be ignored for a short transmission line? 1) Resistance 2) Inductance 3) Reactance 4) Capacitance.
Explain the effects of an increase in long-run aggregate supply on national income and the price level.
a. What are the two basic types of derivative instruments? b. "Derivative markets are nothing more than legalized gambling casinos and serve no economic function." Comment on this statement.
Explain three problems involved in the measurement of inflation.
In a load flow problem, which type of the bus has a known active power? 1) Load bus 2) Voltage-controlled bus 3) All buses except slack bus 4) None of them.
View Policies Current Attempt in Progress During the first quarter of 2022, Pharoah Company reports the following: 1. Estimated overhead $221,000 2. Actual overhead $220,350 3. Estimated labour costs...
If M = 7, s = 2, and X = 9.5, what is z?
Is there any truth in the saying that the price of a good is a reflection of its quality?
The USA is the worlds largest emitter of CO2, and China is the second largest. What issues arise from this in the formulation of a global policy to reduce CO2 emissions?
Think of three examples of monopolies (local or national) and consider how contestable their markets are.
Explain the building blocks of accounting: ethics, principles, and assumptions.
On May 1, 2025, Park Flying School Ltd., a company that provides flying lessons, was started with an investment of 45,000 cash in the business. Following are the assets and liabilities of the company...
The historical cost basis results in: a. initially recording assets at cost and adjusting when the current value changes. b. keeping activities of an entity separate and distinct from its owner. c....

The firm grants credit terms of 1/5, net 30 on purchases of $1,000 or greater. What is

Question:

Expert Answer:

Answer C 1880 Explanation The effective rate of the discount is calculated as follows Discount rate ... View the full answer

Economics

Students also viewed these accounting questions