a man gets an invoice for $460 with terms 2/10, 1/15, n28 ow much would he pay 25 after the invoice date? help a little confused?
I know N means the net
I also figured out 2 is the percent he would get 2% if paid by the 10 and all of it total is due by the 28 but I don't get what does 1/15 does it mean that for every day its late he will get 15% added to it?
To answer your question, the 1/15 means that he would get a 1% discount if paid by the 15. And all is due by 28 days, no discount.
To calculate the amount the man would pay 25 days after the invoice date, we need to follow the terms mentioned: 2/10, 1/15, n28.
Let's break down these terms:
1. 2/10: It means that if the man pays within 10 days of the invoice date, he is eligible for a 2% discount off the total amount.
2. 1/15: If the man doesn't take advantage of the 2% discount and pays between the 11th and 15th day after the invoice date, he can get a 1% discount off the total amount.
3. n28: If he doesn't pay within the discount periods specified above, he has a net period of 28 days to pay the full invoice amount.
Now, let's calculate:
1. If the man pays within the first 10 days, he can take a 2% discount on the $460 invoice amount. The discounted amount would be 2% of $460, which is $9.20. So, he would pay $460 - $9.20 = $450.80.
2. If the man pays between 11 and 15 days after the invoice date, he can apply a 1% discount. The discounted amount would be 1% of $460, which is $4.60. So, he would pay $460 - $4.60 = $455.40.
3. If he doesn't take advantage of the discounts, he would have to pay the full invoice amount of $460.
Since we need to calculate the payment 25 days after the invoice date, we are outside the discount periods. Therefore, the man would have to pay the full invoice amount of $460.