A man gets an invoice for $430 with terms 2/10, 1/15,n/30. How much would he pay 8 days after the invoice date? The net amount due is ?

Question

The net amount of $430 with terms of 2/10, 1/15, n/30. How much is paid in 8 days

Answer 1

Hello, thank you for taking the time to post your question!

Since he’s paying within 8 days that means that it’s going to fall within the 10 day window and he’ll get a 2% discount. That means we can take

Discount = Net Amount x Discount Rate = $430 x 0.02 = $8.60

Final Payment Due (after discount) = $430 - $8.60 = $421.40

I hope that helps you get moving in a better direction on this type of question! Feel free to reach out if you have any additional questions beyond that :)

Answer 2

The 2/10 in the terms stands for a 2% discount if paid within the first 10 days. So, on the 8th day the amount to be paid would be $430 times 100% - 2%... which leads to $430 dollars times 98%... which leads to $430 times 0.98 on the calculator. The answer is $421.40. The net amount due is $430 dollars if paid after the 15th day of the invoice but before 30 days.