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Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of
Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 8% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy. (Assume a 365-day year and round dollar amounts to the nearest cent.)
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