help with discounts for business math (10points).?

T

Tara

New member
An invoice of $2,000 is dated November 10, and terms of 4/10, n/30 are being offered. Find (A) the cash discount and (B) the amount due if the invoice is paid within 10 days.

help me understand the problem so i can do the rest. i'm a homeschool student who has no teachers and i send my work in for grading. they dont help with it. plz help
 
You have received an invoice on November 10 for $2,000 in terms of 4/10, which means you get a discount of 4% off the invoice balance ($2,000), if paid within the 10 days.

The n/30 means NET 30, or that the entire amount ($2,000) becomes due if not paid in 30 days from invoice date.

So using that logic let's answer A and B:

A) Our discount is in the terms of 4/10, which I have mentioned earlier means 4% off of the invoice balance within 10 days. Our balance is $2000. Take 4% of $2,000, and we end up with $80, which is our cash discount:

$2,000 * 0.04 = $80

B) Since the amount due on the invoice is being paid within the 10 days, that means we can apply the 4% discount because of the 4/10 term. Since we have already calculated the discount in A, all we have to do is find the remaining amount due when we take off the discount from the original balance. So, the amount due if the invoice is paid within 10 days is $1,920.

$2,000 - $80 = $1,920
 
4/10 means you get a 4% discount if you pay within 10 days

A- The discount will be .04 x $2,000 = $80.00

B- The amount due is $2,000 - $80.00 = $1920.00

good luck
 
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