You Place an Order for 680 Units of Widgets at a Unit

question 78

Multiple Choice

You place an order for 680 units of widgets at a unit price of $46.The supplier offers terms of 2/5,net 20.If you don't take the discount,how much interest are you paying implicitly?

• A)$46
• B)$625.60
• C)$792.00
• D)$1,460
• E)$1,564

---

Definitions:

Investment Spending

Expenditure on physical assets like machinery, buildings, or equipment, intended to create future benefits.

Hyperinflation

An extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of the real value of local currency.

Discount Rate

The interest rate charged by central banks to financial institutions for short-term loans, influencing monetary policy.

Reserve Requirements

Central banks' mandates on the minimum reserve levels that financial institutions need to uphold for their deposits.