Question

Hello, I was wondering if someone would be able to help me with this problem I'm on. Thanks :)

Answer 1

Price after trade discount = $14,000 - (40% trade discount)

Price after trade discount = $14,000 - ($14,000 * 0.4)

Price after trade discount = $14,000 - ($5,600)

Price after trade discount = $8,400 Price after trade discount = $8,400

2/10 EOM price = $8,400 - (2% discount)

2/10 EOM price = $8,400 - ($8,400 * 0.02)

2/10 EOM price = $8,400 - ($168)

2/10 EOM price = $8,232

So Intel will pay $8,232 on August 5.
Hope this helps.