A well-known financial writer argues that he can earn an extremely high return buying wine by the case. Specifically, he assumes that he will consume one $14 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $14 per week or buy a case of 12 bottles today. If he buys the case, he receives a discount of 7 percent. Assume he buys the wine and consumes the first bottle today. What is the EAR of purchasing wine by the case with this discount?