Mahan Company purchased inventory on account under terms 2/20/n60. Mahan would like to pay the account payable within the discount period in order to receive the discount. Unfortunately, Mahan does not have the cash. What is the maximum annual interest rate that Mahan would be willing to pay in order to borrow the money necessary to settle the account payable?

18.25% Maximum annual interest rate of that Mahan would be willing to pay in order to borrow the money necessary to settle the account payable

Explanation:

Discount offered = 2%

Discount Period = 20 days

Mahan company can avail discount on 20th day. so the number of day the loan will last are  40 ( 60 - 20 ) upto their credit period. Number of days in a year are considered as 365 days .

Maximum Discount = (2% / 40) x 365 = 18.25%

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

answer; niosh, the national institute for occupational safety and health;