Question

The amount of an invoice is $1000, with terms 2/10, n45. The amount to be paid within the discount period is:

Answer 1

Answer:The amount to be paid within the discount period is $980

Explanation:

The term 2/10, n45

means that 2% discount is offered if the amount of invoice is paid within 10 days from the date of invoice .

n/45 means that the buyer will pay the full amount within 45 days if he /she does not pay within the discount period of 10 days .

Now if the amount is to be paid within the discount period, the amount will be

Amount to be paid= $1000- 2% of 1000

= $1000-20

=$980