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Invoice terms of 2/10, n/30 give a discount rate of:
A2 percent
B10 percent
C30 percent
D12 percent
Answer & Solution
Correct answer: A. 2 percent
1. The first number in the term is the rate.
2. The second is the length of the discount window.
3. So the discount rate is 2 percent.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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