Question

A $1000 payment was made on July 7 and a $600 payment was made on July 18. There is a 3% discount on the first payment of $1000. There is also a 1.5% discount on the second payment of $600.

Terms are: 3/10, 1.5/20, n/45. Grand total= $2,500

What is the remaining balance after the second payment?

Answer 1

Answer : Remaining balance after the second payment will be 859.93

Calculation :

Bill Amount 2500.

In first payment, 1000 is paid (which is after discount of 3%). So, amount to be deducted from Bill amount will be : 1000/ 0.97 ==> 1030.93

In second payment, 600 is paid (which is after discount of 1.5%). So, amount to be deducted from Bill amount will be : 600/ 0.985 ==> 609.14

Total Amount to be deducted from Bill is : 1030.93 + 609.14 ==> 1640.07

Remaining amount second payment will be : 2500 - 1640.07 ==> 859.93