To obtain the maximum possible benefit from a cash discount of 2/10, n/30, the buyer should pay the invoice:

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To obtain the maximum possible benefit, the buyer should pay the invoice on the last day of the discount period, i.e. in 10 days, to receive a 2% discount. This way, the buyer gets the cash discount and also has the maximum amount of time to pay the remaining balance. If the buyer pays immediately, they lose out on the opportunity to earn interest on the money for the remaining 20 days. If the buyer waits until the end of the month to receive a 7% discount, they lose out on the opportunity to earn interest for an additional 10 days and also may face late payment penalties.

To Obtain the Maximum Possible Benefit from a Cash Discount