A Buyer Did Not Take Advantage of a Supplier's Credit

question 25

True/False

A buyer did not take advantage of a supplier's credit terms of 2/10, n/30, and instead paid the invoice in full at the end of 30 days. By not taking the discount the buyer lost the equivalent of 18% annual interest on the amount of the purchase.

---

Definitions:

Wisdom Teeth

The last set of molars that most people get in their late teens or early twenties, often removed if misaligned or causing discomfort.

Chewing

The act of breaking down food with the teeth to aid in the digestive process.

Trigeminal Nerve

The fifth cranial nerve responsible for sensory data from the face and head, and motor functions such as biting and chewing.

Oculomotor Nerve

The third cranial nerve, responsible for controlling most of the eye's movements and pupil constriction.