If a Vendor's Invoice States Terms of Sale of 1/10

question 143

Multiple Choice

If a vendor's invoice states terms of sale of 1/10 net 30, and the buyer fails to take the prompt payment discount, it is effectively borrowing money at an annual rate of:

• A)18.25%.
• B)1.0%.
• C)12%.
• D)36.5%.

---

Definitions:

Theoretical Perspective

A specific viewpoint or set of principles used to analyze phenomena or issues, often guiding research methodologies and interpretations.

Holland's

A theory that classifies people and work environments into six types (Realistic, Investigative, Artistic, Social, Enterprising, and Conventional) to help individuals find compatible careers.

Later Life Stages

Refers to the period of life typically associated with old age and retirement, focusing on the psychological, social, and health-related aspects of aging.

Childhood

The period in a human's life from birth to adolescence, characterized by growth, development, and learning in a variety of physical, emotional, and social domains.