# simple interest and simple discount

• Jul 21st 2012, 11:19 AM
angel12
simple interest and simple discount
8,725 plus sales tax 5.5%, cash terms of 3/15.n/30 with a 1.5% service charge on late payments. 90 day same as cash. If unable to pay within 90 days, have to pay 24.9% annual simple interest for first 90 days, plus 2% simple interest per month on the unpaid balance after 90 days. If able to pay off within 15 day discount period, how much is saved and how much is owed? Also if makes purchase on Dec. 30 to get a current year tax deduction, using exact time what is the deadline for paying no interest? What about a leap year? Find the date in ordinary time.
• Jul 21st 2012, 07:37 PM
Wilmer
Re: simple interest and simple discount
Quote:

Originally Posted by angel12
90 day same as cash. [1]

If able to pay off within 15 day discount period, how much is saved and how much is owed? [2]

Also if makes purchase on Dec. 30 to get a current year tax deduction, using exact time what
is the deadline for paying no interest? What about a leap year? Find the date in ordinary time. [3]

[1] : explain
[2] : how can something be owed if paid ?
[3] : explain; makes little sense...

We're not here to find out what tax deductions and the likes mean;
we can help "mathwise", like: 5.5% of 8725 = 8725 * .055