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A business allows customers to pay with a credit card or with cash. If paid with cash, the customer receives a discount of 1 0
A business allows customers to pay with a credit card or with cash. If paid with cash, the customer receives a discount of where paid with credit card, the business will not receive the funds until one month later. Also that time, the business receives only the original purchase price. A customer makes a purchase amount the present value the cash and credit card payments are equal that the business indifferent about which payment option the customer chooses, what Assume a nominal interest rate convertible monthly.
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