Assume you put your purchases on your credit card (borrowing) in order to take advantage of...
Assume you put your purchases on your credit card (borrowing) in order to take advantage of any cash discounts offered. Which one of these credit terms do you prefer?
A) 1/10, net 20
B) 2/5, net 30
C) 2/10, net 30
D) 1/15, net 45
E) 2/15, net 30
Homework Answers
The following of these credit terms is preferable:-
E) 2/15, net 30
As it offers a 2% discount if cash is paid in a maximum of 15 days, it is most beneficial
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