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The Exiter Exchange Company received an invoice dated September 20 for $16,000 less 25%, 20% terms 5/10, 2/30, n/60. Exiter made a payment on September 30 to reduce the debt to $5000 and a payment on October 20 to reduce the debt by $3000.
a) What amount is the original balance that the company must pay (hint: it is not $16,000). What amount must Exiter remit to pay the balance of the debt at the end of the credit period?
b) What is the total amount paid by Exiter?
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