Examlex

Solved

Alpha Corp

question 141

Multiple Choice

Alpha Corp.sells $1,000 of merchandise on account to Beta Corp.with credit terms of 2/10, n/30.If Beta pays within the discount period, how much cash will Alpha receive?


Definitions:

Effective Yield

Effective yield is the total yield on an investment, taking into account the effects of compounding interest or reinvestment over a given period.

Maturity Date

The date on which a financial obligation must be repaid in full.

Present Discounted Value

The present worth of a future amount of money or series of cash inflows, discounted at a given rate of return.

Interest Rate

The cost of borrowing money or the payment made for the use of money, typically expressed as a percentage of the principal amount annually.

Related Questions