An invoice for $4,500 dated September 15 with terms 2/10, 1½/20, n/30, EOM is received in the mail on September 20. What payment would settle the invoice on October 15?
A) $4,500.00
B) $4,432.50
C) $4,410.00
D) $4,590.00
E) $4,567.50

Question

Quizplus · Accepted Answer

The discount period is from September 20 to October 5 (10 days). The discount is 2%, so the amount of the discount is $4,500 x 0.02 = $90. The net amount of the invoice is $4,500 - $90 = $4,410.

An Invoice for $4,500 Dated September 15 with Terms 2/10