You place an order for 1,800 units of widgets at a unit price of $14.99.The supplier offers terms of 2/10, net 30.If you don't take the discount, how much interest on your order are you paying implicitly?
A)$568.33
B)$539.64
C)$519.36
D)$540.65
E)$564.80

Question

Quizplus · Accepted Answer

The discount is 2%, which is $14.99 * 0.02 = $0.2998 per unit. For 1,800 units, the discount is $0.2998 * 1,800 = $539.64. Not taking the discount is equivalent to paying this amount as interest.

You Place an Order for 1,800 Units of Widgets at a Unit