A home accessories store buys lamps with a net price of $22,600. The terms of sale are 4/15, n/30. If a partial payment of $10,300 is sent to the wholesaler on the discount date, what is the net amount still due?

Question

Quizplus · Accepted Answer

The discount is 4%, so the amount of the discount is $22,600 x 0.04 = $904. The net amount due after the discount is $22,600 - $904 = $21,696. The partial payment of $10,300 reduces the net amount due to $21,696 - $10,300 = $11,870.83.

A Home Accessories Store Buys Lamps with a Net Price