Your Company Has Been Offered Credit Terms on Its Purchases

question 72

Multiple Choice

Your company has been offered credit terms on its purchases of 4/30,net 90.What will be the approximate cost of trade credit if your company pays on the 35th day after receiving the invoice?

• A) 30%
• B) 300%
• C) 3%
• D) 87%
• E) 156%