Answer to Question #113990 in Financial Math for Eileen

Question

An invoice from a sporting goods store shows a net price of $8110. Terms are 4/10, n40. The invoice date is June 1. The invoice is paid on June 9.
What is the last day to take the discount? What is the last day to pay the invoice? How much will they pay when they pay the invoice on June 9th?

Answer 1

June 9th is the last day to take the discount,

July 9 is the last day to pay the invoice,

$7 785.6 will they pay when they pay the invoice on June 9th,

$7 785.6 - this is a payment using 4 percent discount , terms are 4/10,

$\$8110-\$8110*0.04=\$7785.6$