An invoice for $450 has terms 2/10, 1/30, n/60. If you pay on the eighth day, how much will you remit?

Question

You have to add the money and the fraction up.

Answer 1

2/10 n/60 means that if you pay within 10 days you can deduct 2 percent from the invoice.

 

1/30 n/60 means that if you pay within 30 days you can deduct 1 percent from the invoice.

 

Otherwise you have to pay the full invoice amount in 60 days.

 

450 * .02 = $9

Since the payment was made within 8 days you can pay $450 - $9 = $441