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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Shawna

6 hours ago

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

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Cordelia

1 days 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

1 days 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

9 days ago

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

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Marti

11 days ago

I think the answer is A) 37%.

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