The cost of giving up a cash discount under the terms of sale 5/20 net 120 (assume a 360-day year) is
A. 15 percent.
B. 18.9 percent.
C. 15.8 percent.
D. 20 percent.
Answer:B
The cost of giving up a cash discount under the terms of sale 5/20 net 120 (assume a 360-day year) is
A. 15 percent. B. 18.9 percent. C. 15.8 percent. D. 20 percent.