Question

A company receives an invoice for $3,500. How much would the company save if it takes advantage of a trade credit discount of 1/15, n/30?

Answer 1

The company would save $35 by taking advantage of the trade credit discount of 1/15, n/30.

Step-by-step explanation:

To calculate the amount the company would save by taking advantage of the trade credit discount, we need to find the amount of the discount. The trade credit discount of 1/15, n/30 means that the company can receive a 1% discount if they pay within 15 days, otherwise the full amount is due in 30 days.

The discount amount can be calculated by multiplying the invoice amount by the discount percentage. In this case, the discount would be $3,500 x 1% = $35. So, the company would save $35 by taking advantage of the trade credit discount.

Keywords: trade credit discount, invoice, save, discount percentage