Question

Three invoices for the amounts of $35,400, $27,000, and $40,550 were received on November 24, 2014, December 24, 2014, and January 16, 2015, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on January 23, 2015 to settle all three invoices.

Round to the nearest cent

Answer 1

To settle all three invoices on January 23, 2015, the total amount due is $102,410, after applying the appropriate discounts based on the payment terms provided.

Step-by-step explanation:

The subject of this question is mathematics, specifically dealing with discounts and payment calculations. The grade level would be high school as it involves understanding payment terms and percentages.

To calculate the amount due on January 23, 2015, for settling all three invoices, we need to understand the payment terms and apply them to each invoice amount:

1. Invoice 1: $35,400 with term 3/7 implies a 3% discount if paid within 7 days. Since the payment on January 23, 2015, is beyond 7 days from November 24, 2014, no discount is applied. Full amount due: $35,400.
2. Invoice 2: $27,000 with term 2/30 implies a 2% discount if paid within 30 days. The payment date falls within this window. Discount: 2% of $27,000 = $540. Amount due after discount: $27,000 - $540 = $26,460.
3. Invoice 3: $40,550 with term n/60 implies no discount, as it must be paid within 60 days to avoid penalties. Full amount due: $40,550.

The total amount that must be paid on January 23, 2015, to settle all invoices is: $35,400 + $26,460 + $40,550 = $102,410.