When a buyer receives an invoice for $100 with terms of "2/15 net 30" he can expect to pay:
A) $100 if he pays anytime in the first 30 days.
B) less than $100 if he pays during the first 15 days.
C) $100 if he pays anytime during the first fifteen days.
D) more than $100 if he pays from day fifteen through day thirty.
E) the full $100 if he waits more than 30 days to pay.

Question

Quizplus · Accepted Answer

The "2/15" in "2/15 net 30" means that the buyer can take a 2% discount if they pay within 15 days. This means that the buyer would only have to pay $98 if they pay within 15 days. If they do not take the discount, the full $100 is due within 30 days.

When a Buyer Receives an Invoice for $100 with Terms