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A supplier of Jones Co buys on terms 1.5/12, net 40. The economy is currently sluggish so Jones Co believes it can pay at day

A supplier of Jones Co buys on terms 1.5/12, net 40. The economy is currently sluggish so Jones Co believes it can pay at day 50 without angering the supplier. If a bank is willing to lend to Jones Co at a APR of 15%, compounded monthly, should Jones Co borrow from the bank or pay its supplier on its terms? What is the difference between the two EARs?

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