Which one of the following statements is correct if you purchase an item with credit terms of 1/5,net 15? A)If you pay within 1 day, you will receive a 5 percent discount. B)If you pay within 5 days, you will receive a 1 percent discount. C)If you do not pay within 15 days, you will be charged interest at a 1.5 percent monthly rate. D)If you pay within 15 days, you will receive a 1/5^th percent discount. E)You must pay the discounted amount within 15 days.

Question

Quizplus · Accepted Answer

Credit terms of 1/5, net 15 mean that you can take a 1 percent discount if you pay within 5 days; otherwise, the full amount is due within 15 days.

Which One of the Following Statements Is Correct If You