The terms 2/10, net 45 offer a _____% discount on purchases paid for within _____ days.
A) 2; 45
B) 10; 2
C) 2; 10
D) 10; 45

Question

Quizplus · Accepted Answer

The first number (2) represents the discount percentage offered. The second number (10) represents the number of days within which the discount may be taken. The third number (45) represents the number of days within which payment must be made in full, without the discount. Therefore, customers who choose to pay within 10 days may take a 2% discount, and those who do not pay within 10 days must pay the full amount within 45 days.

The Terms 2/10, Net 45 Offer a _____% Discount on Purchases