you purchase $1,000 worth of office supplies and receive a bill on 20 - oct with 4/10 eom. what is the…

you purchase $1,000 worth of office supplies and receive a bill on 20 - oct with 4/10 eom. what is the amount to be paid if the discount is included? bill amount with discount = $960 when is the discounted payment due? discount due date (day - month) = 10 - ?

you purchase $1,000 worth of office supplies and receive a bill on 20 - oct with 4/10 eom. what is the amount to be paid if the discount is included? bill amount with discount = $960 when is the discounted payment due? discount due date (day - month) = 10 - ?

Answer

Explanation:

Step1: Understand the discount term

The term 4/10 EOM means a 4% discount if paid within 10 days after the end - of - month.

Step2: Calculate the discounted amount

The original amount is $1000. The discount rate is 4% or 0.04. The discount amount is $1000\times0.04 = 40$. The amount to be paid after discount is $1000 - 40=960$.

Step3: Determine the discount due date

The bill is received on 20 - Oct. With 4/10 EOM, the end - of - month is considered as Oct 31. The discount due date is 10 days after the end - of - month, so it is 10 - Nov.

Answer:

$960 10 - Nov