The amount of an invoice is $1,000, with terms 2/10, n/30. The amount to be paid within the discount period is:

Question

Quizplus · Accepted Answer

The terms 2/10, n/30 mean that there is a 2% discount if the invoice is paid within 10 days, otherwise the full amount is due within 30 days.

To calculate the amount to be paid within the discount period, we take the invoice amount of $1,000 and subtract the discount of 2%, which is $20 (2% of $1,000).

Therefore, the amount to be paid within the discount period is $1,000 - $20 = $980.

So, the best choice is B.

The Amount of an Invoice Is $1,000, with Terms 2/10