If a Company Is Given Credit Terms of 2/10, N/30

Multiple Choice

If a company is given credit terms of 2/10, n/30, it should

A) hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time.
B) pay within the discount period and recognize a savings.
C) pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
D) recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.