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Commerce · Q1142

Financial Management

Graduate and Post Graduate · Commerce · question 1142

Q1142

Cash Discount term 3/15, net 40 means:

A.
3% discount if payment in 15 days, otherwise full payment in 40 days
Answer
B.
15% discount if payment in 3 days, otherwise full payment 40 days
C.
3% interest if payment made in 40 days and 15% interest thereafter
D.
None of the above

Answer: Option A

Solution

Answer: Option A
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