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

Limited Time Offer

25%

Off

Get Premium CPFO Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Elly

27 days 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?

upvoted 0 times

Mila

8 days ago

B) 37.23%

upvoted 0 times

...

Hobert

19 days ago

A) 37%

upvoted 0 times

...

Leota

1 months ago

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

upvoted 0 times

...

Lauran

1 months ago

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

upvoted 0 times

Eura

29 days ago

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

upvoted 0 times

...

Berry

1 months ago

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

upvoted 0 times

...

Lavera

1 months ago

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

upvoted 0 times

...

Shawna

2 months ago

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

upvoted 0 times

Tasia

19 days ago

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

upvoted 0 times

...

Cyndy

1 months ago

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

upvoted 0 times

...

Cordelia

2 months ago

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

upvoted 0 times

...

Rex

2 months ago

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

upvoted 0 times

...

Willie

2 months ago

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

upvoted 0 times

...

Marti

2 months ago

I think the answer is A) 37%.

upvoted 0 times

...