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A company is offering you terms for payment on an invoice of $15,000 of Discount 7% in 10 days Net 120 days. This means that
A company is offering you terms for payment on an invoice of $15,000 of "Discount 7% in 10 days Net 120 days." This means that you can either pay 93% of the amount due in 10 days or pay the entire amount in 120 days. What is the effective rate per year compounded yearly that you will be able to earn on the amount if you take the discount?
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