Question

Ellen co. has offered their customers a 1% discount off the amount owed if they pay within 15 days of receiving their bill. handler company owed ellen co. $2,185 as of may 1st and paid ellen co. on may 7th. how much cash did handler company send to ellen co. on may 7th?

Answer 1

To calculate the amount of cash that Handler Company sent to Ellen Co., we need to determine the original amount owed by Handler Company and then subtract the 1% discount. Handler Company would have sent $2,163.15 cash to Ellen Co. on May 7th.

Step-by-step explanation:

To calculate the amount of cash that Handler Company sent to Ellen Co., we need to determine the original amount owed by Handler Company and then subtract the discount.

Handler Company owed Ellen Co. $2,185. Since Handler Company paid within 15 days, they are eligible for a 1% discount. To calculate the discount amount, we multiply $2,185 by 1% (0.01):

Discount amount = $2,185 x 0.01 = $21.85

Therefore, Handler Company would have sent $2,185 - $21.85 = $2,163.15 cash to Ellen Co. on May 7th.

Answer 2

In this case, handler company gets a discount of $21.85 (1% from the borrowed amount) if they pay within 15 days. Instead of sending a money with a sum of $2,185 to Ellen co., they will be paying only $2,163.15 — which is $21.85 less qualifying to the 1% discount.