Question

An invoice for $2,465.00 has terms 1/10, n/60. The amount credited on a payment made within the discount period was $1,425.00. What was the amount of the payment?

Answer 1

To find the amount of the payment, subtract the discount from the credited amount to get the payment amount.

Step-by-step explanation:

To find the amount of the payment, we first need to calculate the discount taken on the payment made within the discount period. The discount period for this invoice is 1/10, n/60, which means you can get a 1% discount if the payment is made within 10 days. So the discount on the payment would be $2,465 x 1% = $24.65.

The amount credited on the payment made within the discount period is given as $1,425.00. This means that the payment made was the invoice amount minus the discount. So we have $1,425.00 = Amount of payment - $24.65.

To find the amount of payment, we can rearrange the equation and solve for it: Amount of payment = $1,425.00 + $24.65 = $1,449.65.