Question

A customer purchased merchandise on credit for $5,200 with terms 1/15, n/60. What is the amount the customer needs to pay if they take advantage of the discount?

1) $5,200
2) $5,078
3) $5,000
4) $4,968

Answer 1

The customer can pay $5,148 to take advantage of the 1% discount on the $5,200 credit purchase, but this option is not among the provided answers. A mistake appears to be present in the answer choices.

Step-by-step explanation:

The customer purchased merchandise on credit for $5,200 with terms 1/15, n/60. This means the customer has the option to take a 1% discount on the purchase price if they pay within 15 days. If the customer chooses to take advantage of the discount, they can subtract 1% of $5,200, which is $52, from the total amount. Therefore, the discounted amount the customer needs to pay within 15 days is $5,200 - $52, which equals $5,148.

However, this option is not listed among the answer choices provided. The closest amount to the calculated discounted payment of $5,148 is $5,078 which cannot be the correct answer since it would represent more than a 1% discount. It's likely there is a typo or an error in the provided answer choices. As such, the correct answer is not listed among the options provided.