I'm having a hard time figuring out this question. can someone help?

The invoice date is August 1st. The terms are 5/10 EOM. What is the percent of the cash discount being offered? (Include the percent sign in your response.)

Question

I'm having a hard time figuring out this question. can someone help?

The invoice date is August 1st. The terms are 5/10 EOM. What is the percent of the cash discount being offered? (Include the percent sign in your response.)

jim_thompson5910 · Answer

The first number 5 refers to the percent discount, so the discount is 5%

example: if the bill was $100 then you save $5 and the reduced bill turns into $95. This is only if you pay within 10 days. Otherwise, you'd pay full price

anonymous · Answer

Oh! I see! Thank you! I manage to get the answer!