Question

Ellen co. has offered their customers a 1% discount off the amount owed if they pay within 15 days of receiving their bill. handler company owed ellen co. $2,185 as of may 1st and paid ellen co. on may 7th. how much cash did handler company send to ellen co. on may 7th?

Answer 1

In this case, handler company gets a discount of $21.85 (1% from the borrowed amount) if they pay within 15 days. Instead of sending a money with a sum of $2,185 to Ellen co., they will be paying only $2,163.15 — which is $21.85 less qualifying to the 1% discount.