What is the effective cost, Accounting Basics

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What is the effective cost

Duckworth Enterprises' major supplier currently offers payment terms of 2/10, net 30. If Duckworth pays an invoice on the 45th day without taking the discount and with no penalty, what is the effective cost?

a. 20.85%

b. 23.45%

c. 26.34%

d. 49.79%

e. 63.49%

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Accounting Basics: What is the effective cost

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Accounting Basics: What is the effective cost

Reference No:- TGS095649

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