The terms are 4/10, n/30. The net price is $919.60. What is the cash price using the complement method? '

Cash price using complement method id $882.8

Step-by-step explanation:

When a vendor includes terms of 4/10, n/30, the '4' represents 4% of the amount owed, the '10' represents 10 days, the 'n' represents net and the '30' represents 30 days.

So the terms 4/10, n/30 indicate that the buyer may take an early discount of 4% of the amount owed is remitted in 10 days instead of normal 30 days.

In other words, buyer can choose any one of the following:

1) Pay within 10 days and deduct 4% of the net amount owed.

2) Pay in 30 days and take no discount.

For finding cash price using complement method, we have to find the complement of discount percentage = 100-discount percentage=100-4=96

So cash price using complement method = net price X complement of discount percentage in decimals

= 919.6 X 0.96

= $882.8