Question

A hotel purchases goods for $5,000 on credit. If the supplier offers terms of 2/10, n/30, what is the amount the hotel will pay if it pays within the discount period?.

Answer 1

$4,900

Step-by-step explanation:

A hotel purchases goods for $5,000 on credit. If the supplier offers terms of 2/10, n/30, what is the amount the hotel will pay if it pays within the discount period?

the terms are 2/10, n/30. This means they can take 2% off the amount due if they pay within 10 days or they must pay the full amount in 30 days.

If they pay within the discount period they will save:

5,000 * 0.02 = $100 dollars and pay:

5,000 - 100 = $4,900