What is effective annual rate of interest


Response to the following problem:

Company X sells on a 1/20, net 90 basis, Customer Y buys good with an invoice of $2,500.

What is the effective annual rate of interest if Y pays on the due date rather than day 20? (Use 365 days in a years. Do not round intermediate calculations. Round your answer to 2 decimal places.)  .

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Financial Accounting: What is effective annual rate of interest
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