If available,a 1% discount for payment within 10 days instead of 30 days represents an approximate savings of ________% annually.

Question

Quizplus · Accepted Answer

Assuming a payment of $100, the discount for paying within 10 days would be $1. If payment is made within 30 days, the full amount of $100 will be paid.

To calculate the approximate savings annually, we can use the following formula:

Discount percentage = (Discount / Full amount) x (360 / Days of credit period) x 100

For the discount of $1, full amount of $100, and credit period of 20 days (30 - 10), we get:

Discount percentage = (1 / 100) x (360 / 20) x 100 = 18%

Therefore, the approximate savings annually with a 1% discount for payment within 10 days instead of 30 days is 18%.

If Available,a 1% Discount for Payment Within 10 Days Instead