Answer:
80%
Step-by-step explanation:
Data provided as per the question
Number of days in a year = 360 days
Discount provided = 2%
Total net credit period = 30
The calculation of implied annual interest rate inherent in the credit terms is shown below :-
[tex]Inherent\ in\ the\ credit\ terms\ = \frac{Number\ of\ days\ in\ a\ year}{Total\ net\ credit\ period\ - Remaining\ days}\times 2\%[/tex]
[tex]Inherent\ in\ the\ credit\ terms\ = \frac{360}{30 - (30\ -\ 9)}\times 2\%[/tex][tex]Inherent\ in\ the\ credit\ terms\ = \frac{360}{30 - 21}\times 2\%[/tex]
[tex]Inherent\ in\ the\ credit\ terms\ = \frac{360}{\ 9}\times 2\%[/tex]
[tex]Inherent\ in\ the\ credit\ terms\ = \ 40\times 2\%[/tex]
[tex]Inherent\ in\ the\ credit\ terms\ = \ 80\%[/tex]
Therefore for computing the inherent in the credit terms we simply applied the above formula.
