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Apple launched Buy Now, Pay Later in 2 0 2 3 , which allows the customers to split payment into 4 bi - weekly interest

Apple launched Buy Now, Pay Later in 2023, which allows the customers to split payment into 4 bi-weekly interest-free installments. This service imposes opportunity costs of potential interest thatApple could earn from saving or investing the money. Assuming the current interest rate is 6%, and acustomer wants to split his/her payment of $1,000 into 4 installments, estimate the amount of lostinterest for Apple.

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