AFP Certified Treasury Professional CTP Question # 503 Topic 28 Discussion

AFP Certified Treasury Professional CTP Question # 503 Topic 28 Discussion

CTP Exam Topic 28 Question 503 Discussion:
Question #: 503
Topic #: 28

The seller’s cost of capital is 12%. The average credit sale is $200,000, and the credit terms are 2/10, net 30. What is the seller’s net benefit (loss) if the buyer takes the discount and pays by day 10?


A.

$3,986.89


B.

($3,986.89)


C.

$2,688.93


D.

($2,688.93)


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