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Description Term To estimate the annual rate, divide the interest paid by half the amount received. Firms evaluate the likelihood of a customer being unable
Description Term
To estimate the annual rate, divide the interest paid by half the amount received.
Firms evaluate the likelihood of a customer being unable to pay on their account.
This is used by banks to assure payment of loans to privately held companies.
Benefits can be used to repay a loan in the case of the death of an owner or important employee.
This type of discount is used most often in seasonal businesses.
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