Additional Examples
138
Cost of Not Taking a Cash Discount
A cash discount gives a buyer a reduction in price if the payment is made within a specified
time period. For example, “2/10, NET/30” means that the buyer can deduct 2 percent if
payment is made within 10 days. If payment is not made within 10 days, the full amount must
be paid by the 30
th
day.
You can use the equation shown below to calculate the cost of failing to take the cash
discount. The cost is calculated as an annual interest rate charged for delaying payment.
DISC
% is the discount percent if the payment is made early.
TOTAL
DAYS
is the total number
of days until the bill must be paid.
DISC
DAYS
is the number of days for which the discount is
available.
Example
You receive a bill with the credit terms 2/10, NET/30. What is the cost of not taking the cash
discount?
Table 13-3 Calculating the sales estimates for years six and seven
Keys
Display
Description
\t
0.00
Clears statistics registers.
JÆJ::::¡
1.00
Enters first year and sales for
that year.
GÆJJGJ:¡
2.00
Enters second year’s data.
DÆJD:S:¡
3.00
Continues data entry.
YÆJS:jV¡
4.00
VÆG:Vd:¡
5.00
S\W
22,000.50
Estimates sales for year six.
j\W
24,605.00
Estimates sales for year seven.
COST
%
DISC
%
360
×
100
×
100
DISC
%
–
(
)
TOTAL DAYS
DISC DAYS
–
(
)
×
(
)
--------------------------------------------------------------------------------------------------------------------------------------------
=
Summary of Contents for 10bII+
Page 1: ...i HP 10bII Financial Calculator User s Guide HP Part Number NW239 90001 Edition 1 May 2010 ...
Page 3: ...iii HP 10bII Financial Calculator ...
Page 30: ...At a Glance 22 ...
Page 144: ...Statistical Calculations 136 ...
Page 183: ...Warranty Regulatory and Contact Information 9 ...
Page 184: ...Warranty Regulatory and Contact Information 10 ...