If a Vendor's Invoice States Terms of Sale of 1/10

question 143

Multiple Choice

If a vendor's invoice states terms of sale of 1/10 net 30, and the buyer fails to take the prompt payment discount, it is effectively borrowing money at an annual rate of:

• A)18.25%.
• B)1.0%.
• C)12%.
• D)36.5%.

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Definitions:

Rainfall

Precipitation in the form of water droplets that falls from clouds to the ground.

Eutrophication

Nutrient enrichment of an aquatic habitat.

Nutrient Concentrations

The amount of nutrients present in a given volume or mass of soil, water, or air, important for the growth and health of plants and animals.

Savannas

Savannas are grassland ecosystems with scattered trees and shrubs, located in tropical and subtropical regions, characterized by seasonal water availability.