If the Prompt Payment Discount Is Foregone, Which of the Following

question 253

Multiple Choice

If the prompt payment discount is foregone, which of the following credit terms implies the customer is borrowing at a rate that is less than 20% (assume 365 days per year) ?

• A)2/10, net 30
• B)1.5/10, net 30
• C)1/10, net 20
• D)3/20, net 75
• E)All of the above imply borrowing at 20% or more.

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Definitions:

Communication Satellites

Spacecraft launched into orbit that enables wireless communication by relaying signals across the globe.

Transmission Systems

Complex networks designed to transmit electricity, data, or other resources from one location to another efficiently and reliably.

Unique Identity

A distinguishing characteristic or trait that makes an individual or an entity distinct from others.

Human Interaction

The process of communication and exchange between individuals or groups, often involving social, cultural, or professional exchange.