A company has the possibility to pay off a line of credit early for a

A company has the possibility to pay off a line of credit early for a 2% discount rate if paid off in 25 days. There are 24.333 discount periods for the year for this money if the discount is not taken. What are the terms for this cash discount?

A) 2/25 net 50
B) 2/25 net 40
C) 2/25 net 60
D) 2/25 net 70
E) 2/25 net 30

ANSWER

B