A trade credit bill of R80 000 with terms of sale of 2/10, net 30 means the buyer saves ____ if the bill is paid within the discount period.
A)R0
B)R1 600
C)R2 500
D)R4 000

Question

Quizplus · Accepted Answer

The discount being offered is 2% if the bill is paid within 10 days. The amount of the discount is calculated as follows: 
2% of R80 000 = (2/100) x R80 000 = R1 600. Therefore, the buyer saves R1 600 if the bill is paid within the discount period.

A Trade Credit Bill of R80 000 with Terms of Sale