Question

A buyer owes a supplier $820. The terms were 3/10, n/60. Within 10 days, the buyer sent in a payment of $140. How much is the new balance? (Round your answers to the nearest hundredth)

Answer 1

The new balance is $675.8

Explanation:

Solution

Given that

The total amount of loan = $820.

The terms were = 3/10, n/60

Within 10 days, the buyer sent in a payment of =$140

What is the new balance =?

Now,

3/10 = if the amount is paid in 10 days, a discount of is included

n/60 = This means that all amount should be paid within 60 days

Thus,

$140 for 3/10 as this is paid within 10 days

140 *3% = 140 * 3/100

we get

=$4.2 of discount

Then,

The balance amount becomes $ 820 - 140 -4.2

=$675.8