You receive an invoice for $22,800 with terms of 4/15, n/60. The supplier has a 
policy of allowing a cash discount for partial payments and you pay $15,000 within 
the discount period. Calculate the amount of credit you will receive for this payment. 
Calculate the outstanding balance.
Amount credited = __________
Outstanding balance = __________

To solve this problem, let's break it down step by step.

### Step 1: Understand the Terms
- **Invoice amount:** $22,800
- **Discount terms:** 4/15, n/60
  - **4/15:** A 4% discount is available if the payment is made within 15 days.
  - **n/60:** The net (full) amount is due within 60 days without a discount.

### Step 2: Calculate the Discount on Partial Payment
You made a payment of $15,000 within the discount period, so you are eligible for the 4% discount.

- **Discount amount:** $ 4\% $ of $ 15,000 $
  \[
  \text{Discount} = 0.04 \times 15,000 = 600
  \]
- **Amount credited:** 
  \[
  \text{Amount credited} = 15,000 + 600 = 15,600
  \]

### Step 3: Calculate the Outstanding Balance
- **Remaining balance on invoice:** 
  \[
  \text{Remaining balance} = 22,800 - 15,600 = 7,200
  \]

### Final Answer:
- **Amount credited =** $15,600
- **Outstanding balance =** $7,200

Would you like more details or have any questions?

Here are 5 related questions to consider:
1. How would the credited amount change if the payment were made after the discount period?
2. What if you paid the full invoice within the discount period?
3. How is the discount percentage typically decided in business transactions?
4. How would a change in discount terms affect your outstanding balance?
5. What is the effective annual interest rate implied by the discount?

**Tip:** Always verify the discount eligibility period before making partial payments to maximize savings.

Learn how to calculate the amount credited and outstanding balance for an invoice of $22,800 with terms of 4/15, n/60. Includes step-by-step calculations for partial payments and discounts. Ideal for financial professionals and those studying financial mathematics.

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