Candyfloss Ltd has been offered the following terms by Sourworms Ltd when it purchased goods at a price of R4 000.

Terms: 3% cash discount for bills paid within 14 days after the date of the invoice. Normal trade terms are 60 days. Candyfloss could receive interest of 12% p.a. if it invested the amount owing to Sourworms Ltd.

What is the interest receivable that they would receive if they invested the funds and paid within the 60 day period?

Question 11Select one:

a.

R120

b.

R112,20

c.

R78,90

d.

R65,48

e.

R90,12