You buy goods at a list price of $1,300. If you receive a trade discount of 20% and 

terms are “3/15, n/45,” what amount must you pay if you pay within the discount 

period?

Amount paid = __________


To find the amount you must pay if you pay within the discount period, let's follow these steps:

### Step 1: Calculate the Trade Discount
- **List price:** $1,300
- **Trade discount:** 20%

\[
\text{Trade Discount} = 20\% \times 1,300 = 0.20 \times 1,300 = 260
\]

- **Net price after trade discount:**
\[
\text{Net Price} = 1,300 - 260 = 1,040
\]

### Step 2: Calculate the Cash Discount
The terms are “3/15, n/45,” which means:
- **3/15:** A 3% discount is available if paid within 15 days.
- **n/45:** The full amount is due within 45 days.

If you pay within the 15-day discount period:
\[
\text{Cash Discount} = 3\% \times 1,040 = 0.03 \times 1,040 = 31.20
\]

### Step 3: Calculate the Amount to be Paid
- **Amount paid after applying the cash discount:**
\[
\text{Amount Paid} = 1,040 - 31.20 = 1,008.80
\]

### Final Answer:
- **Amount paid =** $1,008.80

Would you like more details or have any questions?

Here are 5 related questions to consider:
1. What would the amount be if you paid after the discount period?
2. How would a different trade discount rate affect the final amount?
3. What is the purpose of offering both trade and cash discounts?
4. How would you calculate the effective annual interest rate of the cash discount?
5. What if the terms were “5/10, n/30”? How would the payment change?

**Tip:** Always subtract the trade discount first before applying any cash discounts to get the correct payment amount.

Learn how to calculate the amount paid after applying trade and cash discounts. Solve a math problem involving a list price of $1,300 with a 20% trade discount and terms “3/15, n/45.” Discover step-by-step calculations and the final amount paid.

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