On January 1, 2014, Shaffer Co. purchased inventory for $1,000 cash with credit terms of 2/10, n/30. If Shaffer does not pay within the discount period, what is the effective annual interest rate

36.73%

Explanation:

EAR = Discount %/(100-Discount %) x (360/(Full allowed payment days - Discount days))

= 2%/(100%-2%)×(360/(30-10)) = 0.0204 × 18 = 36.73%

36.72%

Explanation:

credit terms of 2/10, n/30 means the customer must pay within 10 days to obtain a 2% discount, or can make a normal payment in 30 days

Using this formula

effective annual interest rate = Discount %/(1-Discount %) x (360/(Full allowed payment days - Discount days))

First calculate the difference between the payment date for an early payment discount, and due payment date, and divide into 360 days

= 360days / (30 - 10)days

= 18 days

To calculate the interest rate being offered through 2/10 net 30 terms terms, Subtract the discount percentage from 100%

100% - 2% = 98%

Now divide discount percentage 2% by 98%

= 0.0204.

To calculate the effective annual interest rate, multiply the number of days by the interest rate

= 18 × 0.0204

= 36.72%

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'