Question

If a business receives an invoice for services purchased on account on December 1st for $8,000, how much should the business write a check for to pay the invoice in full on December 8th if the terms are 1/10, n/15?

Answer 1

The amount that should be written on the check is $7920

Explanation:

The explanation of the question is given as:

1/10 = 1% discount to be given if paid within 10 days

n/15 = full amount to be paid within 15 days.

From the question, we can see that:

If the check for the invoice is given on December 8th, it is still within the discount time of 10 days.

Discount amount = $8000 × 1%

= $80

$8000 - $80

= $7920

Hence, the amount that should be written on the check is $7920