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A firm purchases from a supplier on terms of 1/10 net 30. Instead of foregoing the discount, it can borrow from a bank at a

A firm purchases from a supplier on terms of 1/10 net 30. Instead of foregoing the discount, it can borrow from a bank at a rate of 10% discount interest with an average compensating balance of 15%. What are the effective annual rates on a) the trade credit and b the bank loan?

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