B Company buys goods at the term of 3/10, n/45. Alternatively, B Co Company can...

70.2K

Verified Solution

Question

Accounting

B Company buys goods at the term of 3/10, n/45. Alternatively, B Co Company can borrow money at the rate of 3% a month. What is optimal for the Company?

Forgo the discount and pay on the 45th day

Borrow from the bank, and pay on the 45th day

Forgo the discount and pay on the 30th day

Borrow from the bank, pay in 10 days and take the discount

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students