Your company buys supplies on credit terms of 2/10 net 45. Suppose the company makes a

purchase of $20,000 today. Which of the following payment options makes the most sense as a
general rule?

A) Pay the bill on day 10 to get the discount.
B) Pay the bill as soon as possible to keep the supplier happy.
C) Pay the bill on day 45 due to the time value of money.
D) Either pay the bill on day 10 to get the discount, or wait until day 45.

D