Cherie's Lawn and Garden received a shipment of live plants for a list price of $2,890. Cherie was given a series discount of 15/10. The terms of the invoice are 3/10, n/30. How much should Cherie pay if she pays within the discount period?

Question

Quizplus · Accepted Answer

First, we need to calculate the series discount:
List price = $2,890
Series discount = 15/10 (or 1.5)
Discounted price = List price x Series discount 
Discounted price = $2,890 x 1.5 = $4,335

Next, we need to calculate the net price (after deducting the discount):
Net price = Discounted price - Trade discount
Net price = $4,335 - ($4,335 x 3/10)
Net price = $4,335 - $1,300.50
Net price = $3,034.50

Finally, we need to check if paying within the discount period (i.e. 10 days) is beneficial:
Discount amount = Net price x 3/10
Discount amount = $3,034.50 x 3/10
Discount amount = $910.35

Amount to be paid within discount period = Net price - Discount amount
Amount to be paid within discount period = $3,034.50 - $910.35
Amount to be paid within discount period = $2,124.15

Therefore, the best choice is C, $2,144.52, which is the net price of $3,034.50 minus the discount of $910.35 if paid within the discount period.

Cherie's Lawn and Garden Received a Shipment of Live Plants