Question

A company makes three purchases on July 5, one for $550, another for $250 and a third for $75. It returns merchandise costing $35. If the Company is given a discount 2/10 and pays the total amount due on July 20, how much was due?

Answer 1

To find how much is due, you will add the total expenses and subtract the returned amount. You will pay for 8/10 (1 - 2/10) of these costs.

8/10 ($550 + $250 + $75 - $35) = $672.

The amount due is $672.