CIMA Exam CIMAPRA19-F01-1 Topic 2 Question 35 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam

Question #: 35
Topic #: 2

EF has been offering its customers a 60 day credit period, but now wants to improve its cash flow.

EF is proposing to offer a 2% discount for payment in 15 days.

Assume a 365 day year and an invoice value of $100.

Which of the following is the effective annual interest rate EF will incur for this action?

A35.4%

B17.8%

C13.1%

D63.4%

Show Suggested Answer

Suggested Answer: B

by Benton at May 07, 2022, 12:29 AM

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