2/10 net 30 means theres a discount if paid within 30 days right?

Question

2/10 net 30 means theres a discount if paid within 30 days right?

Answer 1

2/10 net 30 means that there is a 2% discount if there is a payment within the first 10 days from invoice date.

Answer 2

It means you get a 2% discount if you pay in 10 days, otherwise, you have to pay the full amount within 30 days.

Answer 3

2%/10, net 30 means you can take a 2% discount if paid within 10 days or in full within the balance of the 30 days.  

A lot of people ignore the 2% discount, but that is a mistake.  Look at it this way: you have to pay the bill anyway, why not pay less?  Also, in many companies, annual increases have been ranging from 1% to 3% lately.  So why not in effect give yourself a 2% raise?

To keep things in perspective, think of this: imagine a "magic ATM", if you will.  On a 2% 10 basis, if you made a $10,000 deposit, you could come back every 10 days and withdraw $200  forever, and still have your $10,000.  Not a bad deal.