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QuestionInvoice dated May 12 with terms 5/10, n/30 for \$53,000. Find:
a) Last day of discount period. b) Amount due if paid on June 5th5^{\text{th}}. c) Amount due if paid on May 20th20^{\text{th}}.

Studdy Solution

STEP 1

Assumptions1. The invoice amount is $53,000. The invoice date is May12th3. The terms of the invoice are5/10, n/30. This means a5% discount is available if the invoice is paid within10 days, otherwise the full amount is due within30 days.

STEP 2

First, we need to find the last day of the discount period. We can do this by adding the discount period (10 days) to the invoice date (May12th).
Last day of discount period=Invoice date+Discount periodLast\, day\, of\, discount\, period = Invoice\, date + Discount\, period

STEP 3

Now, plug in the given values for the invoice date and discount period to calculate the last day of the discount period.
Last day of discount period=May 12th+10 daysLast\, day\, of\, discount\, period = May\,12th +10\, days

STEP 4

Calculate the last day of the discount period.
Last day of discount period=May 22ndLast\, day\, of\, discount\, period = May\,22nd

STEP 5

Next, we need to find the amount due if the invoice is paid on June5th. Since this is after the discount period, the full amount is due. So, the amount due is the invoice amount.
Amount due=Invoice amountAmount\, due = Invoice\, amount

STEP 6

Plug in the given value for the invoice amount to calculate the amount due.
Amount due=$53,000Amount\, due = \$53,000

STEP 7

Finally, we need to find the amount due if the invoice is paid on May20th. Since this is within the discount period, a5% discount is available. We can calculate the discount amount by multiplying the invoice amount by the discount rate.
Discount amount=Invoice amounttimesDiscount rateDiscount\, amount = Invoice\, amount \\times Discount\, rate

STEP 8

Now, plug in the given values for the invoice amount and discount rate to calculate the discount amount.
Discount amount=$53,000times5%Discount\, amount = \$53,000 \\times5\%

STEP 9

Convert the percentage to a decimal value.
5%=.055\% =.05Discount amount=$53,000times.05Discount\, amount = \$53,000 \\times.05

STEP 10

Calculate the discount amount.
Discount amount=$53,000times0.05=$2,650Discount\, amount = \$53,000 \\times0.05 = \$2,650

STEP 11

Now that we have the discount amount, we can find the amount due by subtracting the discount amount from the invoice amount.
Amount due=Invoice amount−Discount amountAmount\, due = Invoice\, amount - Discount\, amount

STEP 12

Plug in the values for the invoice amount and the discount amount to calculate the amount due.
Amount due=$53,000−$2,650Amount\, due = \$53,000 - \$2,650

STEP 13

Calculate the amount due.
Amount due=$53,000−$2,650=$50,350Amount\, due = \$53,000 - \$2,650 = \$50,350a) The last day of the discount period is May22nd. b) The amount due if the invoice is paid on June5th is 53,000.c)TheamountdueiftheinvoiceispaidonMay20this53,000. c) The amount due if the invoice is paid on May20th is 50,350.

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