A supplier invoice is $74,000 with a 2% discount for timely payment. What is the discounted amount?
Correct Answer
B) $72,520
Discount is $74,000 x 2% = $1,480, so payment is $74,000 - $1,480 = $72,520.
Why This Is the Correct Answer
Discount is $74,000 x 2% = $1,480, so payment is $74,000 - $1,480 = $72,520.
Why the Other Options Are Wrong
Option A: $1,480
early payment discount, choice a: $1,480 counts a different spacing, panel, or repeated member quantity.
Option C: $72,000
early payment discount, choice b: $72,000 counts a different spacing, panel, or repeated member quantity.
Option D: $75,480
early payment discount, choice d: $75,480 counts a different spacing, panel, or repeated member quantity.
Memory Technique
Picture a weep path labeled early payment discount: finish every operation before accepting $72,520.
Reference Hint
Open NASCLA Contractors Guide to Business, Law and Project Management, 14th Ed.; use the index entry or section for "early payment discount" to confirm that Discount is $74,000 x 2% = $1,480, so payment is $74,000 - $1,480 = $72,520.
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