A Buyer Borrows Money at 6% Interest to Pay a $6,000

question 243

Multiple Choice

A buyer borrows money at 6% interest to pay a $6,000 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer's net savings for this total event?

• A) $0
• B) $40.00
• C) $40.80
• D) $80.00

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