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A firm offers terms of 2.4/7, net 30. 2.4 a. What effective annual interest rate does the firm earn when a customer does not take
A firm offers terms of 2.4/7, net 30. | 2.4 | ||
a. | What effective annual interest rate does the firm earn when a customer does not take the discount? | ||
b. | What effective annual interest rate does the firm earn if the terms are changed to 3.4/7, net 30, and the customer does not take the discount? | ||
c. | What effective annual interest rate does the firm earn if the terms are changed to 2.4/7, net 60, and the customer does not take the discount? | ||
d. | What effective annual interest rate does the firm earn if the terms are changed to 2.4/12, net 30, and the customer does not take the discount? | ||
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