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A firm offers terms of 1/12, net 37. a) What effective annual interest rate does the firm earn when a customer does not take the

A firm offers terms of 1/12, net 37.

a) What effective annual interest rate does the firm earn when a customer does not take the discount?

b) If the discount is changed to 2 percent, what will be the effective annual interest rate?

c) If the credit period is increased to 58 days, what will be the effective annual interest rate?

d) If the discount period is increased to 19 days, what will be the effective annual inter

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