A Firm Offers Its Customers 3/5 Net 25

question 46

Multiple Choice

A firm offers its customers 3/5 net 25. What is the cost of trade credit to a customer who chooses to pay on day 25?

• A) 32.3%
• B) 65.5%
• C) 68.4%
• D) 74.3%

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Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in decision making, planning, and moderating social behavior.

Corpus Callosum

Brain area where fibers connect the brain’s left and right hemispheres.

Cerebrum

the largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.

Cerebellum

A major structure of the hindbrain that plays a critical role in motor control, coordination, precision, and timing of movements. It is also implicated in cognitive functions such as attention and language.