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BUSY Co. plans to sell a 180 day commercial paper amounting to Php 100,000,000 which it expects to pay a discounted interest of 12% per

BUSY Co. plans to sell a 180 day commercial paper amounting to Php 100,000,000 which it expects to pay a discounted interest of 12% per annum. BUSY expects to incur Php 100,000 in dealer placement fees and paper issue costs. Determine the effective cost of BUSY's credit. (Assume 360 day year).

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