Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/11, net 85. Mr. Warner never takes the discount offered, but he pays his suppliers in 75 days rather than the 85 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount?

Explanation:

Let us say you are doing an essay on the gold trade on the comex. You have to read something to understand what it means to buy gold on the comex. You need to at least know what it takes to buy and sell on the comex.

What you read to find out is a reference. It has to be listed in a Bibliography which is a list of references.