Lifestyle received an invoice on March 15 from its supplier. The net total for an armchair was $375 and payment terms stated 2/15, 1/20 and n/30. What is the Cash Discount if they pay it on March 21st?

$3.75

$7.50

$37.50

$75.00

Question

Lifestyle received an invoice on March 15 from its supplier. The net total for an armchair was $375 and payment terms stated 2/15, 1/20 and n/30. What is the Cash Discount if they pay it on March 21st?

$3.75

$7.50

$37.50

$75.00

sillybilly123 · Answer

March 15 $\to  $ March 21 is less than 15days so the 2pc offer applies

So discount is:

0.02 * 375

sillybilly123 · Answer

and not a stats question