A company received an invoice with terms 3/10, n/30. The bill was $13,450. The company is short of cash and sends in a partial payment of $6,400 within 10 days. (a) What credit should the company receive? (b) What is the outstanding balance? Round to the nearest cent.

Question

anonymous · Answer

I'm not sure this one is so confusing to me. plus I am not very good at math anyways. so is it saying they are supposed to pay 3% in the first 10 days?

anonymous · Answer

So would they still get the discount sense they did send in more than 3% within the first 10 days?

tkhunny · Answer

Oh, right.  Sorry, I'm totally backwards.

3/10 means, "Pay it off in 10 days and you get a 3% discount."

Thus, you owe $13,450, but if you pay it off in less than 10 days, you can get away with paying only $13,046.50

In this case, the have only $6400.  They pay that within 10 days and might get a discount on what they have paid.  In this case, $6400 is 97% of something.  6400/0.97 = $6,597.94.

They still owe: $13,450.00 - $6,597.94 = $6,852.06

Did you change the problem after I read it or am I just getting old?  Really, sorry about whatever I said up front.  Totally not seeing the right problem!

anonymous · Answer

Oh I get it now. Thank you so much. No I didn't change it. I do the same thing, people tell me sometimes I over think things and make it harder than it really is. lol.