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4/ The company Amadeus has offered credit terms of 3/10, n30 Which is the Equivalent annual rate? Your customers are not taking use of the

4/ The company Amadeus has offered credit terms of 3/10, n30

Which is the Equivalent annual rate?

Your customers are not taking use of the terms, you decide to improve the proposal with two alternatives:

  1. 5/1, n30
  2. 5/1, n60

Which is the EAR for both alternatives?

Which is the best option for Amadeus and why?

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