ACME Inc,Has Credit Terms of 2/10 Net 60

question 43

Multiple Choice

ACME Inc.,has credit terms of 2/10 net 60.Customers should take the discount and pay in 10 days if they CANNOT earn more than ________ (APR) or ________ (EAR) on their investments.

• A)14.90% APR or 15.89% EAR
• B)15.89% APR or 14.90% EAR
• C)12.42% APR or 13.08% EAR
• D)13.08% APR or 12.42% EAR

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Definitions:

Amsel

A reference to Abram Amsel, a psychologist known for his work on the frustration theory of learning.

Escape Behavior

An action taken to terminate an ongoing, unpleasant stimulus, effectively allowing an individual to avoid discomfort.

Drive

An internal motivational state created by physiological or psychological needs that drives an individual towards specific behaviors.

Pavlovian Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.