The Cost of Not Taking the Discount on Trade Credit

question 97

Multiple Choice

The cost of not taking the discount on trade credit of 2/10, net 30 is equal to

• A) 44.54%
• B) 43.20%
• C) 36.73%
• D) none of these

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Definitions:

Nondirectional Correlation

A type of correlation that indicates a statistical relationship between two variables without specifying whether the relationship is positive or negative.

Negative Correlation

A connection between two variables where as one variable rises, the other falls.

Direct Correlation

A relationship between two variables where they move in the same direction.

Nondirectional Correlation

A type of correlation where the direction (positive or negative) of the relationship between variables is not specified.