If Available,a 1% Discount for Payment Within 10 Days Instead

question 59

Multiple Choice

If available,a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

• A)1
• B)12
• C)18
• D)36

---

Definitions:

Inflation

An increase in the economy’s average price level.

Expansion

Expansion refers to the phase in the economic cycle where an economy is growing and experiencing increasing levels of output, employment, and income.

Actual Output

The actual quantity of goods and services produced in an economy over a specific period.

Demand

The desire and ability of consumers to purchase goods and services at given prices.