## Related questions with answers

Find the final discount date and the net payment date.

Invoice Date | As of | Terms | Final Discount Date | Net Payment Date |
---|---|---|---|---|

Nov. 7 | Nov. 18 | 3/10, n/40 |

Solution

Verified$\begin{align*} &\textit{ Final}\quad\quad &&\textit{ Net}\\ &\textit{Discount Date}\quad\quad &&\textit{Payment Date}\\ &\text{Nov 28}\quad\quad &&\text{Dec 28} \end{align*}$

$3/10$ means that a $3\%$ discount is applied if the invoice is paid within $10$ days of the AS OF date, which means until Nov 18+10=Nov 28, so the Final Discount Date is $\textcolor{#4257b2}{\textbf{Nov 28}}$.

$n/40$ means that if no payment is made within $10$ days of the AS OF date, then the full invoice amount must be paid within $40$ days of the AS OF date, which means after $30-18=12$ days of November and another $40-12=28$ days of December, so the Final Discount Date is $\textcolor{#4257b2}{\textbf{Dec 28}}$.

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