1. Mr. Hendrickson’s suppliers offer him a 3% trade discount if he pays for his purchases within 10 days. Due to cash flow problems, Mr. Hendrickson presently takes about 60 days to pay back his suppliers. What is the implied annualized rate (APR) that Mr. Hendrickson is paying on his short-term debt?

1. 3.0%
2. 3.09%
3. 22.6%
4. 30.0%
5. 34.21%

Answer rating: 100% (QA)

Annualized rate APR Discount 10... View the full answer