GFOA Exam CPFO Topic 12 Question 96 Discussion

Actual exam question for GFOA's CPFO exam

Question #: 96
Topic #: 12

[All CPFO Questions]

Assume an invoice with credit terms of 2%/10, net30. The interest charge is 2% of $1000, or $20; the principal is $980; and the days of principal borrowed are the 20 days of credit. What is the interest rate offered if the discount is taken?

A37%

B37.23%

C37.33%

D37.35%

Show Suggested Answer

Suggested Answer: D

by Beckie at Sep 12, 2024, 10:54 PM

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Elly

2 months ago

I bet the discount is the 'carrot' and the interest rate is the 'stick' in this question. Real 'carrot and stick' stuff, am I right?

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Candra

1 months ago

C) 37.33%

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Mila

2 months ago

B) 37.23%

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Hobert

2 months ago

A) 37%

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Leota

3 months ago

I bet the person who wrote this question is a math wizard. They really put us through the wringer with this one!

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Dustin

1 months ago

C) 37.33%

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Malcom

1 months ago

B) 37.23%

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Cecilia

1 months ago

A) 37%

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Lauran

3 months ago

37.35%? That's a pretty precise answer. I wonder if they're trying to trick us with that level of detail.

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Eura

2 months ago

I calculated it and got 37.35% too, so I think that's the correct answer.

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Berry

3 months ago

I agree, it seems like a tricky question to see if we understand the concept of interest rates.

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Lavera

3 months ago

I think they might be trying to test our calculation skills with that level of precision.

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Shawna

3 months ago

Hmm, I think I've got it. Option D looks like the right answer to me.

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Tasia

2 months ago

Yes, I think so too. Option D it is.

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Cyndy

3 months ago

I agree, option D seems to be the correct answer.

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Cordelia

3 months ago

I agree with Willie, the answer is C) 37.33% because the interest charge is $20 on a principal of $980.

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Rex

3 months ago

Wow, this is a tricky one! I'm going to need to break out my calculator for this one.

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Willie

3 months ago

I disagree, I calculated it and I believe the answer is C) 37.33%.

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Marti

3 months ago

I think the answer is A) 37%.

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