BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$9
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$45
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$441
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$450
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Detailed explanation-1: -Another way of finding the net price is the complement method. The complement of your trade-discount rate is 100 percent minus the discount rate. This is sometimes called the net-price rate. You can multiply the list price by the complement to find the net price.
Detailed explanation-2: -An invoice dated March 6 with terms of 1/10, EOM results in the end of the discount period on: 1/10 EOM-this means the buyer will receive a cash discount if the bill is paid within 10 days after the end of the month indicated on the invoice date (March 6). EOM results in the end of the discount period on: April 10.
Detailed explanation-3: -The trade discount series 40/12.5//2 is equivalent to a single trade discount of 52.84%.
Detailed explanation-4: -The discount period is the period between the last day on which the discount terms are still valid and the date when the invoice is normally due. For example, if the discount must be taken within 10 days, with normal payment due in 30 days, then the discount period is 20 days.