The Peel Trading Company received an invoice dated September 20 for $16 000 less 25% and 20%,

Question:

The Peel Trading Company received an invoice dated September 20 for $16 000 less 25% and 20%, terms 5/10, 2/30, n/60. Peel 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 must Peel remit to pay the balance of the debt at the end of the credit period?
(b) What is the total amount paid by Peel?