Question

If the retailer opts for the 60-day certificate of deposit, he will be late on his payment to the wholesaler. how much will the penalty be if he is late on his payment to the wholesaler?

a) $50
b) $100
c) $150
d) $200

Answer 1

If a retailer is late on their payment to the wholesaler after opting for the 60-day certificate of deposit, they will be charged a penalty. The penalty is $10 for being late, and an additional $5 for each day the payment remains unpaid.

Step-by-step explanation:

When a retailer chooses the 60-day certificate of deposit and is late on their payment to the wholesaler, they will be charged a penalty. The penalty is $10 for being late, and an additional $5 for each day that the payment remains unpaid.

Let's say the retailer is late by X number of days. The penalty for being late is $10, and for each day the payment remains unpaid, the penalty increases by $5. Therefore, the penalty can be calculated using the formula: Penalty = $10 + ($5 * X).

Since the question does not provide any specific number of days the retailer is late, we cannot determine the exact penalty amount. Hence, the answer to the question is indeterminate.