A buyer failed to take advantage of the vendor's credit terms of 2/10, n/45, but instead paid the invoice in full at the end of 45 days.

A buyer failed to take advantage of the vendor’s credit terms of 2/10, n/45, but instead paid the invoice in full at the end of 45 days.

A buyer failed to take advantage of the vendor’s credit terms of 2/10, n/45, but instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is:

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