Assume that if students buy more than $250 of art supplies in one visit, they may put the charge on a student account with terms of 2/10 EOM. If a student makes the purchase on September 16, on what day does the 2% discount expire? If the purchase is made on September 26, on what day does the 2% discount expire? If you were an art student, which method would you prefer: 2/10, n/30, or 2/10 EOM?

Question

Assume that if students buy more than $250 of art supplies in one visit, they may put the charge on a student account with terms of 2/10 EOM. If a student makes the purchase on September 16, on what day does the 2% discount expire? If the purchase is made on September 26, on what day does the 2% discount expire? If you were an art student, which method would you prefer: 2/10, n/30, or 2/10 EOM?

Answer 1

To determine the expiration date for the 2% discount, we first need to know what "2/10 EOM" means. "2/10" refers to a discount of 2% that is available if the payment is made within 10 days. "EOM" stands for "end of the month," so the payment is due by the end of the month.

Now, let's calculate the expiration dates for the two scenarios:

1. For a purchase made on September 16, you have 10 days to make the payment. Since the payment terms are "2/10 EOM," the end of the month would be September 30. Therefore, the discount expires on September 26 (16 + 10).

2. For a purchase made on September 26, you still have 10 days to make the payment. In this case, the end of the month would be October 31. Thus, the discount expires on October 6 (26 + 10).

Regarding which payment method I, as an art student, would prefer, let's consider the options:

1. 2/10: This means a 2% discount is available if payment is made within 10 days. This option provides a shorter payment period than the other two.

2. n/30: This means no discount is available, but the payment is due within 30 days. It gives more time to pay but does not provide any discount incentive.

3. 2/10 EOM: This offers a 2% discount if payment is made within the given timeframe after the end of the month. It allows more time for payment compared to the 2/10 option.

As an art student, it would depend on my financial situation and when I expect to have funds available. If I have the funds within 10 days, I would prefer the 2/10 option, as it provides a discount. If I need more time to gather funds, I would prefer the 2/10 EOM option as it gives a longer payment period while still offering a discount. However, if I don't expect to have the funds within 30 days, the n/30 option might be the best choice to prevent late payment fees.