Larry's Lawn Care allows customers to use a credit card for purchases. Larry pays 4 percent of the sale to the credit card company. To promote more business, Larry decides to offer a lower price to customers paying cash - that price being 3 percent less than the standard list price. Larry is giving his customers a(n)

Question

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Larry is providing a cash discount to customers equal to the cost of credit, which is typically expressed as a percentage off the list price. The answer is D, cash discount.

Larry's Lawn Care Allows Customers to Use a Credit Card