Tim O'Brien gets the invoice for a load of gravel he purchased last week. The price of the gravel was $55, and the terms are 2/10, n/45. If Tim pays the invoice in five weeks, he will owe
A)a penalty.
B)$53.90.
C)$56.10.
D)$58.30.
E)$55.00.

Question

Quizplus · Accepted Answer

The terms 2/10, n/45 mean a 2% discount is available if paid within 10 days, otherwise the net amount is due in 45 days. Since Tim pays in five weeks (35 days), he does not qualify for the discount and owes the full amount of $55.00.

Tim O'Brien Gets the Invoice for a Load of Gravel