True Value received an invoice dated 4/28/12. The invoice had a $5,700 balance that included $600 freight. Terms were 5/10, 4/30, n/60. True Value pays the invoice on May 12. What amount does True Value pay?

16. You receive an invoice for $565.00 with terms 3/10, net 30. If you pay it immediately, how much will you pay?

To determine the amount True Value pays, we need to understand the terms of the invoice.

The terms stated are: 5/10, 4/30, n/60.

The first number in the terms (5) represents the percentage of discount the buyer (True Value) is eligible for if payment is made within a specified period. The second number (10) represents the number of days within which the buyer must make the payment to be eligible for the discount. The third number (4) represents the percentage of discount the buyer is eligible for if payment is made within another specified period. The fourth number (30) represents the number of days within which the buyer must make the payment to be eligible for the second discount. Finally, the last part of the terms (n/60) means that the net payment is due within 60 days, and no discount is applicable after that.

In this case, True Value pays the invoice on May 12, which is 14 days after the first discount period ends.

To calculate the payment amount, we need to consider the discounts and deduct them from the invoice balance.

1. Calculate the first discount amount:

Invoice balance: $5,700
Discount percentage: 5%
Discount amount = Invoice balance * (Discount percentage / 100)
= $5,700 * (5 / 100)
= $285

2. Calculate the second discount amount:

Invoice balance - first discount amount = $5,700 - $285 = $5,415
Discount percentage: 4%
Discount amount = Invoice balance * (Discount percentage / 100)
= $5,415 * (4 / 100)
= $216.60

3. Calculate the net payment amount:

Invoice balance - (first discount amount + second discount amount) = $5,700 - ($285 + $216.60)
= $5,700 - $501.60
= $5,198.40

Therefore, True Value will pay $5,198.40 to settle the invoice.

To determine the amount that True Value pays, we need to break down the terms mentioned in the question. Let's go step by step:

1. Terms: 5/10, 4/30, n/60
- The first number represents the discount percentage.
- The second number represents the number of days within which the discount is applicable.
- The third number represents the credit period allowed before payment is due.

2. The invoice was received on April 28, 2012.
- Since the terms are stated in reference to the invoice date, we need to determine which discount period True Value qualifies for based on the invoice date.

3. Invoice date: April 28, 2012
- The first discount period (5%) starts on the invoice date (4/28/12) and ends 10 days later (5/8/12).
- The second discount period (4%) starts on the last day of the first discount period (5/8/12) and ends 30 days after the invoice date (5/28/12).
- The third discount period (n%) starts on the last day of the second discount period (5/28/12) and ends 60 days after the invoice date (6/27/12).

4. True Value pays the invoice on May 12, 2012.
- Since True Value pays on May 12, 2012, we need to check which discount period applies.

5. May 12, 2012 falls within the first discount period.
- Since the payment is made within the first discount period, the discount of 5% is applicable.

6. Calculation:
- Invoice balance: $5,700 (which includes $600 for freight).
- Discount: 5% of $5,700 (invoice balance) = $285.
- Payment amount: Invoice balance minus discount = $5,700 - $285 = $5,415.

Therefore, True Value pays a total amount of $5,415.