Sarah Just Received an Invoice for $12,000 with Terms of 2/10

question 71

Multiple Choice

Sarah just received an invoice for $12,000 with terms of 2/10, n/30. The invoice date was June 1. Her contract with the vendor indicates a charge of 1.5 percent per month on late payments. If Sarah pays this bill on July 15, she will send the vendor a check for

• A) $11,760.
• B) $12,000.
• C) $12,180.
• D) Cannot answer without more information.