What amount must be paid to settle an invoice of $1200 dated Nov.28 , terms 3/10, n/30 if the invoice is paid on Dec. 3? I got $1164. Am I right? Thanks
Yes, you are right!
To calculate the amount that must be paid to settle the invoice, we need to consider the terms and the payment date.
The terms "3/10, n/30" indicate that a 3% discount is available if the invoice is paid within 10 days, otherwise the full amount is due within 30 days.
In this case, the invoice is paid on Dec. 3, which means it is within the 10-day discount period. Therefore, we can apply the 3% discount to the invoice amount.
Discount amount = Invoice amount * Discount rate
Discount amount = $1200 * 0.03
Discount amount = $36
The discounted invoice amount is the invoice amount minus the discount.
Discounted invoice amount = Invoice amount - Discount amount
Discounted invoice amount = $1200 - $36
Discounted invoice amount = $1164
So, you are correct. The amount that must be paid to settle the invoice is $1164.
To calculate the amount to be paid to settle the invoice, we need to consider the terms mentioned in the question. The terms "3/10, n/30" indicate a cash discount of 3% if paid within 10 days, with the full amount due within 30 days.
In this case, the invoice is dated November 28th, and it is paid on December 3rd. Since the payment is made within 10 days, the cash discount applies.
To calculate the discount, we need to find 3% of the invoice amount ($1200). To do this, we multiply $1200 by 3% (or 0.03):
$1200 * 0.03 = $36
This means the discount is $36.
To find the amount to be paid after the discount, we subtract the discount from the invoice amount:
$1200 - $36 = $1164
So, based on the calculations, you are correct. The amount to be paid to settle the invoice is $1164.