Question

A merchandise was sold on credit for $5,400 with terms 3/10, n/30. What is the amount of discount if the payment is made within 10 days?

1) 10%
2) $540
3) $54
4) Cannot be determined

Answer 1

The amount of discount if the payment is made within 10 days is $162, calculated as 3% of $5,400. None of the given options matches this amount.

Step-by-step explanation:

The merchandise was sold on credit for $5,400 with terms 3/10, n/30. This means that if the payment is made within 10 days, a discount of 3% is offered. To find the amount of discount, we calculate 3% of $5,400.

Amount of discount = 3% of $5,400

Amount of discount = 0.03 × $5,400

Amount of discount = $162

Therefore, the correct option here is None of the above, as none of the given options matches the calculated amount of discount.