A $300 invoice dated Aug 1 due Aug 30 with terms 3/10 net 30 paid on or before Aug 10. What is the payment amount?

A $300 invoice dated Aug 1 due Aug 30 with terms 3/10 net 30 paid on or before Aug 10. What is the payment amount?

• A. $270
• B. $300
• C. $291
• D. $299

Answer: (C)

Early payment discounts reduce the amount due when payment is made within a set window. With an invoice of $300 and terms of 3/10 net 30, a 3% discount is available if paid within 10 days. Paying on or before Aug 10 qualifies, so the discount is 3% of 300, which is 9. Subtracting that from the total gives 300 − 9 = 291. So the payment amount is $291. If you missed the window, the amount would be the full $300 by Aug 30.

Early payment discounts reduce the amount due when payment is made within a set window. With an invoice of $300 and terms of 3/10 net 30, a 3% discount is available if paid within 10 days. Paying on or before Aug 10 qualifies, so the discount is 3% of 300, which is 9. Subtracting that from the total gives 300 − 9 = 291. So the payment amount is $291. If you missed the window, the amount would be the full $300 by Aug 30.