BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The full amount of the purchase is ₱480.00 pesos. If a cash discount of 10% is allowed, find the amount of the cash discount.
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38
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48
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58
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68
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None
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Explanation:
Detailed explanation-1: -To calculate the cash discount, the formula uses the price and the rate. The formula reads: Cash Discount = Purchase Price x Discount Rate. For example, if the price of the product is $200 and the discount rate is 10%, then the cash discount would equal $20, which means the consumer saves $20.
Detailed explanation-2: -2/10 net 45 means a 2% early payment discount if a customer pays within 10 days. Otherwise, the total amount is due within 45 days of the invoice date.
There is 1 question to complete.