Business FinancesQuestion 1210 of 1632
A contractor buys $5,000 of materials with terms 1/15, net 45. If he pays on day 12, what does he pay?
a.$4,950
b.$5,000
c.$4,850
d.$4,250
Explanation
1/15 means a 1% discount if paid within 15 days. Discount = $5,000 x 1% = $50. Payment = $5,000 - $50 = $4,950.
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