On September 1,a firm grants credit with terms of 2/10 net 45. The creditor: A) must pay a penalty of 2% when payment is made later than September 1^st. B) must pay a penalty of 10% when payment is made later than 2 days after September 1^st. C) receives a discount of 2% when payment is made at least 10 days before September 1^st. D) receives a discount of 2% when payment is made before September 1^st and pays a penalty of 10% if payment is made after September 1^st. E) receives a discount of 2% when payment is made within 10 days after the effective invoice date of September 1^st.

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The terms "2/10 net 45" mean that the creditor receives a 2% discount if payment is made within 10 days of the invoice date, which is September 1st. Otherwise, the full amount is due within 45 days.

On September 1,a Firm Grants Credit with Terms of 2/10