Business FinancesQuestion 1134 of 1605
A contractor offers 2/10, net 30 terms and pays a $10,000 supplier invoice on day 8. How much does he pay?
a.$10,000
b.$9,980
c.$9,800
d.$9,000
Explanation
2/10, net 30 means a 2% discount if paid within 10 days. $10,000 x 2% = $200 discount. Payment = $10,000 - $200 = $9,800. Taking early-payment discounts improves margins.
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