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A firm offers terms of 1/10, net 30.What effective annual interest rate does the firm earn when a customer does not take the discount? WITHOUT

A firm offers terms of 1/10, net 30.What effective annual interest rate does the firm earn when a customer does not take the discount? WITHOUT doing any calculations, explain what will happen to this effect rate is:

a. The discount is changed to 2%

b. If the credit period is increased to 40 days

c. The discount period is increased to 14 days?

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