A. This answer is incorrect. See the correct answer for a complete explanation.

B. This answer is incorrect. See the correct answer for a complete explanation.

C. This question is solved using the following formula:

360                                          Discount %

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Total Period for Payment - Period of Discounted Payment            100% - Discount %

Inputting the information from the question into the formula, we get 36.7%, as follows: (360 / 20) × (.02 / .98) = 18 × .0204 = .367 or 36.7%.

D. This answer is incorrect. See the correct answer for a complete explanation.