Question

An invoice dated August 15 is paid on August 20 . The amount on the bill is $ 1,525 and the credit terms are 3 / 10 , n / 30. What amount should be paid?

(a)$ 1,325.00 (b)$ 1,425.00 (c)$ 1,479.25 (d)$ 1,495.00 (e)$ 1,525.00

I am having trouble figuring what formula i could use to solve this problem. Please help me out.

Answer 1

Since the invoice is paid within 10 days, the customer takes 3% off the amount on the bill.

1525 - (1525 * 0.03) = ?

Answer 2

$1,479.25