A cash discount of 3/15, net 30 means that the buyer
A. makes a 3 percent down payment on the face value of the invoice within 15 days, with the remainder due in 30 days.
B. gets a 3 percent discount off the face value of the invoice if the invoice is paid within 15 days.
C. gets a 15 percent discount off the face value of the invoice if the invoice is paid within 3 days.
D. gets a 3/15 (20 percent) discount if the invoice is paid within 30 days.
E. None of these answers is correct.
Answer: B
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