Question: Syntech is offered credit terms of 2/10, net 40, but decides to forego taking the cash discount and pays on the 45th day. What is Syntech's cost of foregoing the cash discount? [AFC=(Interest Paid/usable funds)(365/maturity(days)]
The four answers that I have are one of the following:
a. 24.83%
b. 21.28%
c. 18.62%
d. none of the above