Maryland Nursery Offers Customers Credit Terms of 3/15 Net 30

question 288

Multiple Choice

Maryland Nursery offers customers credit terms of 3/15 net 30.This gives customers a:

• A)fifteen percent discount if they pay in three days.
• B)three percent discount if they pay in thirty days.
• C)three percent discount if they pay in fifteen days.
• D)fifteen percent discount if they pay in thirty days.

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating the rate at which additional income will be taxed.

After-tax Return

The profit from an investment after all taxes have been subtracted, indicating the net gain to the investor.

Time Horizons

The length of time over which an investment is expected to be held before it is liquidated, ranging from short-term to long-term periods.

Casualty Insurance

Insurance coverage for loss or liability stemming from a sudden, accidental event.