Need explanation help Math money help?
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?