DGaylor1982 DGaylor1982

04-08-2016
Mathematics

contestada

Jones of New York sold a fax machine for $400 to Ron Stationery of Boston. Terms of the sale on July 29 are 2/10 EOM FOB New York. Jones agreed to prepay the freight of $25. Assume Ron pays on September 4. How much will it pay Jones?

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Edufirst Edufirst

17-08-2016

2/10 EOM means that the purchaser will receive a 2% discaount if he pays within 10 days after the end of the month.

It is supposed that if it bought on July 29, EOM is August 31,

Then, September 4 is within the terms to get the 2% cost and it paid Jones 400 - 2% of 400 = 400*0.98 = 392.

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