Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   What would be the amount of check issued for 08/11 invoice for $648.50 paid on 09/13 (https://www.askmehelpdesk.com/showthread.php?t=522895)

  • Nov 4, 2010, 10:37 AM
    mmassas1227
    What would be the amount of check issued for 08/11 invoice for $648.50 paid on 09/13
    What would be the amount of check issued for 08/11 invoice for $648.50 paid on 09/13 with the terms (3/10, 2/15, n30-5% apr)?
  • Nov 6, 2010, 12:56 PM
    Just Looking

    I'm assuming this is a homework problem so I won't just give you the answer, but I'll explain the terms.

    3/10 means you can take a 3% discount if you pay the invoice within 10 days.

    2/15 means you take a 2% discount if you pay with 15 days.

    n30 means you pay the net amount of the invoice (the $648.50) if you pay within 30 days.

    5% apr means you owe interest at the rate of 5% per year if you pay after 30 days. You have to calculate that interest based on when you pay the invoice.

  • All times are GMT -7. The time now is 05:19 AM.