The terms of an invoice of Rs. 8700 are as follows : "Cash 15, 9/8, 6/16, n/20" On making payment on…
The invoice terms 'Cash 15, 9/8, 6/16, n/20' offer a 15% discount on cash payment, 9% within 8 days, 6% within 16 days, and net (full amount, 0% discount) within 20 days.…
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The terms of an invoice of Rs. 8700 are as follows :
"Cash 15, 9/8, 6/16, n/20"
On making payment on the 19th day, the payment amount will be :
Answer and explanation
Correct answer D
The invoice terms 'Cash 15, 9/8, 6/16, n/20' offer a 15% discount on cash payment, 9% within 8 days, 6% within 16 days, and net (full amount, 0% discount) within 20 days. Since payment is made on the 19th day (after day 16), the full amount of Rs. 8700 is payable.
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Rajasthan Clerk Grade 2