An Invoice for $50,000 Dated March 15 with Terms 3/10

question 11

Multiple Choice

An invoice for $50,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17. If the company wants to reduce the outstanding balance to $25,000, how much should they pay on March 26?

• A) $24,250
• B) $25,000
• C) $24,500
• D) $25,500
• E) $25,750

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Definitions:

Annual Dividend

An annual dividend is the yearly sum paid by a corporation to its shareholders, representing a portion of the company's earnings distributed per share.

Rate of Return

Rate of return is the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Dividend Remains

Indicates the portion of earnings that a company decides to retain rather than distribute to shareholders as dividends.

Annual Dividend

The total dividend payment a shareholder receives from a company in a single year.