Emco Ltd. received an invoice dated May 5 for $4000 less 15% and 7 1⁄2%, terms 3/15 E.O.M. A cheque for $1595.65 was mailed by Emco on June 15 as part payment of the invoice.
(a) By how much did Emco reduce the amount due on the invoice?
(b) How much does Emco still owe?