You Buy Goods for $10,000 and Receive an Invoice with Terms

question 47

Multiple Choice

You buy goods for $10,000 and receive an invoice with terms 1/10,n/40.What is the maximum simple interest rate that you would borrow money at to take advantage of the discount?

• A)9.13%
• B)9.22%
• C)12.17%
• D)12.29%

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Definitions:

Elaborative Strategy

A method for increasing retention of new information by relating it to well-known information.

Rote Rehearsal

A memorization technique that involves repeating information over and over again to embed it in memory.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Problem Solution

A method or process of solving an issue or overcoming a challenge.