The Cost of Not Taking the Discount on Trade Credit

question 8

Multiple Choice

The cost of not taking the discount on trade credit of 3/10, net 30 is equal to

• A) 54.75%.
• B) 55.67%.
• C) 56.44%.
• D) 36.50%

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Definitions:

Frozen Food

Food products that have been subjected to rapid freezing and are kept frozen until used to extend their shelf life.

Calzones

A type of Italian folded pizza, filled with various ingredients such as cheese, meats, and vegetables, then baked.

Inferior Goods

Goods whose demand decreases when consumers' incomes increase, opposite to normal goods.

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.