Question

5. What amount must be paid to settle an invoice of $1200.00 dated November 28, terms 3/10, n/30 if the invoice is paid on December 3?

A) $1200.00 B) $1236.00 C) $1080.00 D) $1164.00

Answer 1

Ans D) $ 1164

3/10 referes to 3% discount if the purchaser pays the dues in 10 days of purchase. Since the invoice is paid on time the purchaser will get 3% discount.

Discount = 3% * Purchase Amount

             = 3% * 1200

             = $ 36

Net Amount = Purchase amount - Discount

                  = 1200 - 36

                  = $ 1164