Cash discount practice problems

Marketing Unit 8. Try each one, then open the worked solution. The Credit Sprint app generates unlimited new versions with fresh numbers.

Problem 1.

An invoice for $4,000 has terms of 3/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 3% × 4000 = 120. Payment = 4000 − 120 = 3880.

Problem 2.

An invoice for $1,500 has terms of 1/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 1% × 1500 = 15. Payment = 1500 − 15 = 1485.

Problem 3.

An invoice for $1,000 has terms of 3/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 3% × 1000 = 30. Payment = 1000 − 30 = 970.

Problem 4.

An invoice for $1,000 has terms of 2/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 2% × 1000 = 20. Payment = 1000 − 20 = 980.

Problem 5.

An invoice for $1,500 has terms of 3/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 3% × 1500 = 45. Payment = 1500 − 45 = 1455.

Problem 6.

An invoice for $3,500 has terms of 1/10, net 30. How much (in dollars) does the buyer pay if it pays within 10 days?

Show solution

Discount = 1% × 3500 = 35. Payment = 3500 − 35 = 3465.