Answer:
The right solution is:
(a) $1,940
(b) $2,813
Step-by-step explanation:
Given:
Invoice amount
= $8,400
Discount 1
= 33.33%
Discount 2
= 12.5%
So,
The net payable amount will be:
= [tex]8400\times [1 - \frac{100}{300} ]\times [1 - \frac{12.5}{100} ][/tex]
= [tex]8400\times \frac{2}{3}\times 0.875[/tex]
= [tex]4900[/tex] ($)
Now,
(a)
Amount paid will be:
= [tex]2000\times 0.97[/tex]
= [tex]1940[/tex] ($)
Balance still to be paid will be:
= [tex]4900-2000[/tex]
= [tex]2900[/tex] ($)
(b)
Amount paid will be:
= [tex](4900- 2000)\times 0.97[/tex]
= [tex]2900\times 0.97[/tex]
= [tex]2813[/tex] ($)
Balance still to be paid will be:
= [tex]2000[/tex] ($)
Thus the above solution is the appropriate one.
