3/10, N60 Implies 1

question 10

Multiple Choice

3/10, n60 implies 1. a 3% discount if paid in 60 days 2. a 3% discount if paid in 10 day 3. payment must be made by the 60th day​

• A) 1 and 2​
• B) ​1 and 3
• C) ​2 and 3
• D) ​1, 2, and 3

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Definitions:

Risk Averse

The tendency of individuals to prefer certainty over uncertainty, avoiding risks where possible, especially in financial decisions.

Dividend

A portion of a company's earnings distributed to its shareholders.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender or the rate earned on a deposit or investment.

Present Value

The present value of a future amount of money or series of cash flow using a given rate of return.