Terms of Sale of 2/10 Net 30 Mean

Multiple Choice

Terms of sale of 2/10 net 30 mean:

A) the buyer may take a 10% discount if payment is made within two days of receiving the bill.
B) a 10% penalty is due of the bill is not paid within two days of the due date which is in 30 days.
C) the buyer may take a 2% prompt payment discount if the bill is paid within 10 days, should pay in 30 days, and will be liable for a 2% penalty if payment isn't made in 30 days.
D) the buyer is borrowing money at 36.5% if it fails to take the prompt payment discount offered.