Need explanation help Math money help?

Question

I'm doing Accounting: about Discount Period. I need help with an explanation, I already know the answer, I just don't know understand how's it's solved.

So, in my problem:

Merchandise (gross) = $9,800 

Terms = 2/10, n/60

Payment = ?

I know this:

Invoice amount is 9,800

Discount is 9,800 x .02 = 196

Payment amount is 9,800 x .98 = 9604

Where does .98 come from in payment amount?

Answer 1

Favorite Answer

9800 less 2% means the amount paid is 98% of 9800.

Answer 2

1.00 - .02 = .98 lots of summer school.

Answer 3

if they have a 2% discount, they pay 98%