Trade Credit Terms guess, net

Nishant1

2/10 net 45

45=(1+ 2/98) ^ 365/35-1 = 23.45

Can anyone explain this to me?

My best guess is that 2 less 100 gets you 98 and 45 less 10 gets you 35, but I have no idea why.

Kiakaha

Nope, it means 2% discount if you pay within 10 days, if not the payment is due within 45 days.

ramdabom

2/10 net 45 means 2% discount if you pay within 45 days