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A buyer borrows money at 6% interest to pay a $9200 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer’s net savings for these two transactions?

Respuesta :

Answer:

$61.61

Explanation:

The computation of net savings is shown below:-

If buyer borrow money on 10th day on invoice, benefit of rupees

= $9,200 × 1 ÷ 100

= $92

So, the buyer will repay the loan on 30th day of the invoice, the interest will be paid

= 30 - 10

=20 Days

Interest = $9,200 × 6% × 20 ÷ 360

= 30.36

Net saving = Discount benefit - Interest paid

= $92 - 30.36

= $61.61