Which Is the Type of Discount Would Most Likely Be

question 124

Multiple Choice

Which is the type of discount would most likely be given to a customer who pays bills within a stated period?

• A)Cash discount
• B)Noncumulative quantity discount
• C)Trade discount
• D)Cumulative quantity discount
• E)Consumer discount

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Definitions:

Compounded Monthly

Definition: The process where interest is calculated and added to the principal amount of the deposit or loan every month.

Lump Sum Deposit

A single and typically large payment made at once rather than being divided into multiple payments over time.

Compounded Semi-Annually

This involves computing interest on the original investment and the interest that has been accrued over two periods within the same year.

Semi-Annual Contributions

Payments or deposits made into an investment or savings account twice a year.