Zach returned $195 of merchandise to Secret Trails. His original purchase was $400, with terms 1/10, n/30. If Zach pays the balance of his account after the discount period, how much should he pay?
A) $202.95
B) $205.00
C) $195.00
D) $400.00

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of the discount Zach would receive if he paid within the discount period:
Discount = $400 x 1/10 = $40
The amount of the original purchase after the discount would be:
$400 - $40 = $360

Next, we need to subtract the amount of the return:
$360 - $195 = $165

Finally, if Zach pays after the discount period, he will not receive the discount, so he will owe the full amount of $165. Therefore, the answer is choice B, $205.00.

Zach Returned $195 of Merchandise to Secret Trails