A Firm Grants Credit With Terms Of 2/5, Net 20. The Firms Customers Have ______ Days To Pay In Order To Receive A _____

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A firm grants credit with terms of 2/5, net 20. The firms customers have ______ days to pay in order to receive a _____ percent discount. Select one: 30;5 20;2 2;5 15;2 5;2 Electronics and More offers credit terms of 1/5, net 20. What is the effective annual rate on a $12,000 purchase if you forgo the discount? Select one: 8.59% 0% 27.71% 14.99% 32.58%

Expert's Answer

Solution:                     a. 2/5 , net 20  means customer will get  2 % discount if he pay within 5 days or pay full payment in 20days.               hence.                        your answer is                         e.)     5 ; 2  …

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