Question 9 you are doing some comparison shopping. five stores offer the product you want at basically the same price but with differing credit terms. which one of these terms is best-suited to you if you plan to forgo the discount?

Question

Rory Lynch

Business

9 April, 18:27

Question 9 you are doing some comparison shopping. five stores offer the product you want at basically the same price but with differing credit terms. which one of these terms is best-suited to you if you plan to forgo the discount?

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Donovan Fernandez · Answer 1

Here we have not been given the answer choices. However, we can see that these choices are: 2/10 net 30, 2/5 net 30, 2/5 net 20, 1/10 net 45, 1/5 net 15

Here we are to select the best one if you want to forgo the discount. Since you want the discount to be forgone, we will select the plans that offer the least discount which are options 4 and 5 1/10 net 45 and 1/5 net 15.

Net out of these two, the 1/10 net 45 gives you discount of 1% for 10 days with total payable in 45 days and the other one gives you a 1% discount in 5 days. So we would like to select the one with most number of days without discount and this would be 1/10 net 45 and would give you a total of 45 days to pay the credit as against only 15 days in other option.

Hence the option which best suites is 1/10 net 45.