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A retail store offers its customers a 2/10 net 30 discount term. If a customer purchases $5,000 worth of merchandise, how much will they pay

  • A retail store offers its customers a 2/10 net 30 discount term. If a customer purchases $5,000 worth of merchandise, how much will they pay if they take advantage of the discount? What will be the effective interest rate if they choose not to take the discount and pay within the 30-day period?

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