The Jones Company buys $1,500 worth of goods from the Acme Corporation on credit with a provision of 2.5/10, net 30. The Jones Company desires to get the discount. How much will it have to pay within 10 days to do so?
The '2.5/10' part means a 2.5% discount is available if paid within 10 days. (2.5% = 0.025) Amount of the discount: ($1,500 x 0.025) = $37.50 Amount needed to pay within 10 days is ($1,500 - $37.50) = $1,462.50
