You contract with a landscaper to install a new patio in your backyard. Her bill is $[?] $1,850 \frac{2}{5}$ net 30. Find the amount needed to pay the bill with the discount included.
Answer (2)
The total amount needed to pay the bill is $1,850.40. This includes the full amount without any discounts since the payment is due within 30 days. Therefore, you owe $1,850.40 in total.
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Calculate the decimal equivalent of the fraction: 5 2 = 0.4 .
Add the decimal to the whole number: $1 , 850 + $0.4 = $1 , 850.40 .
Since there is no discount, the amount due is the full bill amount.
The amount needed to pay the bill is 1850.40 .
Explanation
Understanding the Bill The problem states that the bill amount is $1 , 850 5 2 net 30. This means the total amount due is one thousand eight hundred fifty and two-fifths dollars, and the payment is due within 30 days. The 'net 30' term indicates that no discount is offered for early payment; the full amount is due within 30 days.
Calculating the Bill Amount First, we need to convert the mixed number to a decimal to find the exact bill amount. We have $1 , 850 5 2 . To convert the fraction 5 2 to a decimal, we divide 2 by 5, which equals 0.4. Therefore, the bill amount is $1 , 850 + $0.40 = $1 , 850.40 .
Determining the Payment Amount Since there is no discount offered (as indicated by 'net 30'), the amount needed to pay the bill is the full amount. Therefore, the amount needed to pay the bill is $1 , 850.40 .
Examples
Understanding invoices and payment terms like 'net 30' is crucial in many real-life scenarios, such as managing personal finances or running a business. For example, if you receive a bill for $500 net 30, it means you owe $500 and must pay it within 30 days. Knowing this helps you plan your payments and avoid late fees. Similarly, businesses use these terms to manage their cash flow and ensure timely payments from clients. Understanding these financial terms is essential for responsible financial management.
