The Following Invoices, All with Terms 5/10, 2/30, N/60, Were

question 108

Essay

The following invoices, all with terms 5/10, 2/30, n/60, were paid together on March 15. Invoice No. 457 dated January 30 is for $294.67; invoice No. 542 dated February 15 is for $486.50; and invoice No. 877 dated March 10 is for $911.25. What amount was remitted?

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Definitions:

Expiration Date

In finance, the date at which a derivative contract such as an option or futures agreement ceases to exist.

Tax-Exempt Bonds

Bonds issued by government entities that offer interest payments not subject to federal income tax, and in some cases, state and local taxes.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage based on the investment's cost, its current market value, or its face value.

Taxable Bonds

Bonds whose interest payments are subject to federal, state, or local income taxes.