To calculate the Discount Amount:
\[ \text{D} = \text{P} \times r \]
To calculate the Net Amount to be Paid:
\[ \text{N} = \text{P} - \text{D} \]
Where:
2/10 Net 30 is a term used in business to signify that a purchaser can take a 2% discount of the invoice amount if the invoice is paid within 10 days. If the invoice is not paid within 10 days, the full amount is due within 30 days of the invoice date. This is a form of trade credit which benefits the buyer for early payment.
Let's assume the following values:
Step 1: Calculate the discount amount:
\[ \text{D} = 1000 \times 0.02 = 20 \]
Step 2: Calculate the net amount to be paid:
\[ \text{N} = 1000 - 20 = 980 \]
So, the Discount Amount is $20 and the Net Amount to be Paid is $980.
Let's assume the following values:
Step 1: Calculate the discount amount:
\[ \text{D} = 500 \times 0.02 = 10 \]
Step 2: Calculate the net amount to be paid:
\[ \text{N} = 500 - 10 = 490 \]
So, the Discount Amount is $10 and the Net Amount to be Paid is $490.
