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Questions and Answers
What is the cash discount offered if the payment is made within 10 days?
What is the cash discount offered if the payment is made within 10 days?
- 10% of the invoice amount
- 5% of the invoice amount
- 3% of the invoice amount (correct)
- 2% of the invoice amount
What is the total amount the merchant must pay if the payment is not made within 10 days?
What is the total amount the merchant must pay if the payment is not made within 10 days?
- Rs.2684
- Rs.2716
- Rs.2800 (correct)
- Rs.2724
If the merchant borrows money at 18% to pay the invoice on the 10th day, what is the profit the merchant can realize?
If the merchant borrows money at 18% to pay the invoice on the 10th day, what is the profit the merchant can realize?
- Rs.43.4
- Rs.45.6
- Rs.48.4 (correct)
- Rs.49.4
If the merchant doesn't have money to pay for the invoice in 10 days, what is the highest simple interest rate at which he would be willing to borrow?
If the merchant doesn't have money to pay for the invoice in 10 days, what is the highest simple interest rate at which he would be willing to borrow?
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What is the effective cost of not taking the cash discount if the merchant pays the full amount on the 30th day?
What is the effective cost of not taking the cash discount if the merchant pays the full amount on the 30th day?
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