NOCTI Financial And Investment Planning Practice Test

Under terms 3/60, n/90, by what date must payment be made to receive the 3% discount?

March 10 May 9 May 10 April 9

Correct Answer:

May 9

Explanation:

In trade credit terms, 3/60 means you get a 3% discount if you pay within 60 days of the invoice date; n/90 means the net amount is due in 90 days with no discount after the 60-day window. If the invoice date is March 10, the 60-day discount period ends on May 9, so payment by May 9 earns the 3% discount. After May 9, the discount is no longer available, though the full net amount would still be due by 90 days.

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