Comfort Corporation Offer Its Customers Payment Terms of a 2

Multiple Choice

Comfort Corporation offer its customers payment terms of a 2% discount if they pay in the first 10 days of receiving the invoice or paying the net amount up until 45 days after receipt. If a customer has the option of borrowing from the bank to pay the invoice right away at what interest rate on the borrowings will it make no difference to take the discount or to borrow the money?

A) 21.34%
B) 12.65%
C) 23.45%
D) 44.61%
E) 18.56%