A buyer of $7900 in merchandise inventory failed to take advantage of the vendor's credit terms of 3.00/15, n/45, and instead paid the invoice in full at the end of 45 days. By not taking advantage of the cash discount, the buyer lost the discount of:
A. $237.
B. $1185.
C. $100.
D. $790.
E. $79.
Answer: A
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