A Merchant Receives an Invoice for a Motor Boat for $5000

question 108

Multiple Choice

A merchant receives an invoice for a motor boat for $5000 with term 4/30,n/100.In order to take advantage of discount,he wants to borrow the required money.If he can borrow at r = 14%,how much money does he save?

• A)$74.08
• B)$71.12
• C)$65.75
• D)$63.12

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities aimed at generating profits.

Distribution Channels

Paths or routes through which goods and services flow from the producer to the consumer or end-user.

Primary Types

The principal or most important categories or classes within a broader group.

Market Share

The percentage of total sales or revenue generated by a company or product in a particular market compared to its competitors.