Math Problem Statement
Calculate the credit given for the partial payment and the net amount due on the invoice (in $). (Round your answers to the nearest cent.) Amount of Invoice Terms of Sale Partial Payment Credit for Partial Payment Net Amount Due $5,998.20 4/15, n/60 $2,500 $ $
Solution
We are given the following information:
- Invoice amount: $5,998.20
- Terms of sale: 4/15, n/60 (4% discount if paid within 15 days; otherwise, the net amount is due within 60 days)
- Partial payment: $2,500
Step 1: Calculate the discount for partial payment
The terms of sale offer a 4% discount if payment is made within 15 days. The discount on the partial payment is calculated as:
So, the credit for the partial payment is:
Step 2: Calculate the net amount due
The net amount due on the invoice is calculated by subtracting the credit from the invoice amount:
Final Answer:
- Credit for Partial Payment: $2,600
- Net Amount Due: $3,398.20
Would you like more details or have any questions?
Here are five related questions:
- How would the result change if the discount rate was 3% instead of 4%?
- How do you calculate the net amount due if no partial payment was made?
- What happens if the payment is made after 15 days but before 60 days?
- How is the discount calculated for multiple partial payments?
- Why do companies offer discounts for early payments?
Tip: Always check the terms of sale to see if discounts apply before making a payment.
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Math Problem Analysis
Mathematical Concepts
Discount Calculation
Basic Arithmetic
Invoice Payment Terms
Formulas
Discount = Partial Payment × Discount Rate
Credit for Partial Payment = Partial Payment + Discount
Net Amount Due = Invoice Amount - Credit for Partial Payment
Theorems
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Suitable Grade Level
Grades 9-12
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