Question: In this question we will compute the effective annual cost of trade credit. Suppose a firm is offered the following the terms are 1.5/8 net

In this question we will compute the effective annual cost of trade credit. Suppose a firm is offered the following the terms are 1.5/8 net 30. Find the annualized interest cost?

(enter as a percentage to one decimal place)

Please choose the correct answer from the list (14.3%; 22.5%; 10.98%; 28.5%; 15.2%)

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