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A firm offers terms of 4/12, net 30. What effective annual interest rate does the firm earn when a customer does not take the discount?

A firm offers terms of 4/12, net 30.

What effective annual interest rate does the firm earn when a customer does not take the discount? Effective Rate: ____________ %

What is the effective annual rate if the discount is changed to 3 percent? Effective Rate: ___________%

What is the effective annual rate if the discount period is reduced to 5 days? Effective rate: ____________ %

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