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A store will give you a 2% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the
A store will give you a 2% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate (EAR) being paid by customers who choose to defer payment for the month? Show your calcuation steps.
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