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A corporation is currently experiencing cash-flow problems and has determined that it is in need of short-term credit. It can either use its trade credit

A corporation is currently experiencing cash-flow problems and has determined that it is in need of short-term credit. It can either use its trade credit on P100,000 of accounts payable with terms of 1/10, net 30 or a 30-day note with a 20% annual simple interest rate. Which is the best alternative, and what is its effective rate of interest (rounded to a whole percentage and using a 360-day year)?

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