An Invoice for $12,000 Has Terms 1/20,n/45

question 45

Multiple Choice

An invoice for $12,000 has terms 1/20,n/45.If you take out a loan to take advantage of the discount and the bank uses ordinary interest (i.e.the banker's rule) ,what is the maximum rate of simple interest that you would be willing to pay?

• A)8.08%
• B)8.19%
• C)14.55%
• D)14.75%

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Definitions:

Volume Of Speech

The loudness or intensity of a person's voice when speaking.

Cuticles

The thin layer of skin at the base of the nails on fingers and toes, protecting the nail matrix from infections.

Brittle

Having a hard but easily breakable texture or quality, often describing materials or substances.

Clubbing

A condition where the fingers and toes swell into a club-like shape, often indicating underlying health issues.