Your Supplier Grants You Credit Terms of 2/10, Net 35

question 230

Multiple Choice

Your supplier grants you credit terms of 2/10, net 35. What is the effective annual rate of the discount if you purchase $2,900 worth of merchandise?

• A) 23.5 percent
• B) 27.7 percent
• C) 28.8 percent
• D) 33.5 percent
• E) 34.3 percent

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Definitions:

Expressive Vocabulary

The set of words a person can actively use in speech or writing.

Holophrase

A single word that is used to express complex meanings.

Naming Explosion

A rapid increase in vocabulary that typically occurs in early childhood.

Expressive Explosion

A rapid increase in a child's vocabulary and expressive language skills, usually occurring between the ages of 18 months to 2 years.