Interest rate inherent in the credit terms

Reference no: EM13146203

Stanton Company purchased merchandise with an invoice price of $2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?

a. 2%

b. 12%

c. 18%

d. 36%

Reference no: EM13146203

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