Answer:
Cash price using complement method id $882.8
Explanation:
When a vendor includes terms of 4/10, n/30 , the '4' represents 4% of the amount owed , the '10' represents 10 days, the 'n' represents net and the '30' represents 30 days.
So the terms 4/10, n/30 indicate that the buyer may take an early discount of 4% of the amount owed is remitted in 10 days instead of normal 30 days.
In other words, buyer can choose any one of the following:
1) Pay within 10 days and deduct 4% of the net amount owed.
2)Pay in 30 days and take no discount.
For finding cash price using complement method, we have to find the complement of discount percentage= 100-discount percentage=100-4=96
So cash price using complement method = net price X complement of discount percentage in decimals
= 919.6 X 0.96
= $882.8