The owner of store that specializes in birds ordered $200 of Tropican food from Hagen Avicultural Research Institute. On the invoice dated October 18 that Hagen sent to the store owner was written, "3/10, EOM." If the store owner pays the bill in full on November 2, what amount will she have to pay?
A)$147.00
B)$189.00
C)$191.00
D)$200.00
E)$183.00

Question

Quizplus · Accepted Answer

The term "3/10, EOM" means that the store owner can take a 3% discount if the bill is paid within 10 days of the invoice date, or pay the full amount by the end of the month (EOM) and not receive a discount.

If the store owner pays the bill by October 28 (10 days after October 18), she can take a 3% discount:
$200 x 0.03 = $6 discount
$200 - $6 = $194

However, since the store owner paid the bill in full on November 2 (after the discount period), she will have to pay the full amount of $200. Therefore, the best choice is C.

The Owner of Store That Specializes in Birds Ordered $200