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If a firm is unable to take a trade discount (2/10, net 30), the effective annual cost, assuming the firm pays the bill on time, is: (a) usually lower than the prime rate

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If a firm is unable to take a trade discount (2/10, net 30), the effective annual cost, assuming the firm pays the bill on time, is:

(a) usually lower than the prime rate.

(b) about 10 percent.

(c) about 25 percent.

(d) about 37 percent.