Which one of the following terms of sale has the highest effective annual interest rate if the company does not take the cash discount?

A company can by identical raw materials from four suppliers. Each supplier offers a different term of sale .

Which one of the following terms of sale has the highest effective annual interest rate if the company does not take the cash discount?
A . 1/10, net 90
B. 1/30, net 90
C. 1/10, net 45
D. 1/30 net 45

Answer: D

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