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The collection of a $4,600 account after the 2% discount period will result in a__________

User Masche
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Final Answer:

Collection of $4,600 after the 2% discount period will result in a payment of $4,692.

Step-by-step explanation:

When a customer pays an invoice after the discount period has expired, they are no longer eligible for the discount. In this scenario, if a $4,600 account is settled after missing the 2% discount period, the full invoice amount without the discount must be paid.

The total amount due after missing the discount can be calculated by adding the initial invoice amount ($4,600) to the interest accrued for the period beyond the discount deadline. Using the formula:

Total amount due = Invoice amount + Interest, the interest can be calculated as follows:

Interest = {Invoice amount} × ({Discount rate}\{100})

Interest = 4,600 × ({2}\{100}) = 92

Therefore, the total amount due after missing the 2% discount period would be the original invoice amount of $4,600 plus the interest of $92, resulting in a payment of $4,692. This amount represents the full payment required after the discount period has lapsed.