You've received an invoice for $3000.00 with terms of 3/10, 1/20.n/30. How much will you have to pay if you pay the bill in 12 days.
$2970.00
$2,970
To calculate how much you will have to pay if you pay the bill in 12 days, you will need to understand the terms "3/10, 1/20, n/30.” These are commonly used payment terms that indicate the discount offered for early payment and the maximum credit period.
Let's break down these terms:
1. "3/10" means that if you pay within 10 days, you are entitled to a 3% discount. In this case, the discount is calculated based on the full amount of the invoice, which is $3000.00.
2. "1/20" means that if you pay within 20 days, you are entitled to a 1% discount. Again, the discount is calculated based on the full amount of the invoice.
3. "n/30" means that the full amount of the invoice is due within 30 days.
Now, since you intend to pay the bill in 12 days, you fall within the 10-day discount period but not the 20-day discount period.
To calculate the amount you need to pay, follow these steps:
1. Calculate the amount of the discount by multiplying the invoice amount by the discount percentage: $3000.00 × 3% = $90.00.
2. Subtract the discount amount from the original invoice amount to find the discounted amount: $3000.00 - $90.00 = $2910.00.
Therefore, if you pay the bill within 12 days, you will need to pay $2910.00.