The net price of goods from evelyn's hair care products to the springtime boutique is $3,576.90. the terms are 3/10, n/30. the date of the invoice is january 1. the date paid is january 8. what is the cash price?

Question

Business

Rhys Terry

22 February, 22:11

The net price of goods from evelyn's hair care products to the springtime boutique is $3,576.90. the terms are 3/10, n/30. the date of the invoice is january 1. the date paid is january 8. what is the cash price?

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Answers (1)

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Ty Carr · Answer 1

Cash price is the total amount of money that is traded when merchandises are bought and sold. The cash price usually will include all transaction, carry and transportation costs.

In the problem, the net price is $3,576.90. Meaning, the discount of 3% is already deducted here because the invoice date is January 1 and they paid on January 8 which is included in 10 days of providing the cash discounts on purchases.

To compute for the cash price:Net Price divided by. 97 (100%-3%)

- Explanation is: we are looking for the 100% but the 3% is already part of the 3576.90, so what is left to look for is the remaining 97%.

= $3,576.90 /.97 = $3,687.53

To check, get the discount using the cash price: = 3,687.53 * 0.03 = $110.63

Deduct this amount to the cash price to get the net price: = $3,687.53 - $110.63 = $3,576.90