Which one of the following statements is correct if you purchase an item with credit terms of 3/15, net 45?
A) If you pay within 3 days, you will receive a discount of 15 percent.
B) If you pay within 15 days, you will receive a discount of 3 percent.
C) If you do not pay within 15 days, you will be charged interest at a rate of 3 percent per month.
D) If you pay 3 percent of your purchases within 15 days, you will have 45 days to pay for the remainder.
E) One-third of your purchase is due in 15 days and the rest is due in 45 days.

Question

Which one of the following statements is correct if you purchase an item with credit terms of  3/15, net 45?
A) If you pay within 3 days, you will receive a discount of 15 percent.
B) If you pay within 15 days, you will receive a discount of 3 percent.
C) If you do not pay within 15 days, you will be charged interest at a rate of 3 percent per month.
D) If you pay 3 percent of your purchases within 15 days, you will have 45 days to pay for the remainder.
E) One-third of your purchase is due in 15 days and the rest is due in 45 days.

Quizplus · Accepted Answer

The credit term 3/15, net 45 means that the buyer can take a 3% discount if they pay within 15 days or pay the full amount within 45 days without any discount. So, statement B is correct. Statement A is incorrect because there is no mention of a 15% discount. Statement C is incorrect because there is no information about interest charges. Statement D is incorrect because it suggests paying only 3% of the purchases instead of the full amount. Statement E is incorrect because it does not represent the credit terms accurately.

Which One of the Following Statements Is Correct If You