Question

The following invoice contains the notation "2/10, n/30." Determine the price of the order. An invoice dated December 27 lists an order priced at $885.00. The order is paid for on January 5.

Answer 1

Answer:

The problem statement tells you the order price is $885.00.

The balance to be paid on 5 Jan is 2% less than that, $867.30.

Step-by-step explanation:

The notation "2/10, n/30" means a discount of 2% is applied if the invoice is paid within 10 days, but the net amount is due within 30 days in any event. 10 days after 27 Dec is 6 Jan, so a payment on the 5th of January is subject to the 2% discount.

After 2% is subtracted from 100% of the invoice amount, 98% percent remains. The payment need only be ...

... 0.98 × $885.00 = $867.30

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Comment on problem wording

Your problem statement says, "Determine the price of the order." It also says, "... an order priced at $885.00." The determination asked for is found in the problem statement: $885.00. If that is the required answer, it would place this problem in the "trick question" category, as the notation and payment date information are clearly unneeded.

We suspect the problem really wants you to determine the amount to be paid for the order when payment is made on January 5. Unfortunately, that is not what is asked for.