Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal

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Your company has been offered credit terms of 4/30, net 90 days. What will be the nominal annual percentage cost of its non free trade credit if it pays 120 days after the purchase? (Assume a 365-day year.) Show your work
a. 16.05%
b. 16.90%
c. 17.74%
d. 18.63%
e. 19.56%

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Financial Management for Decision Makers

ISBN: 978-0138011604

2nd Canadian edition

Authors: Peter Atrill, Paul Hurley

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