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The Cost of Giving Up a Cash Discount on a Credit

Question 31

Multiple Choice

The cost of giving up a cash discount on a credit purchase is ________.


A) added on to the price of the goods in order to make payment quickly
B) deducted from the price of the goods in order to make payment quickly
C) the implied interest rate paid in order to delay payment for an additional number of days
D) the true purchase price of the goods

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