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Everett Entertainment wants to offer credit to its customers, with interest on outstanding balances paid monthly. To carry receivables, Everett must borrow funds from their
Everett Entertainment wants to offer credit to its customers, with interest on outstanding balances paid monthly. To carry receivables, Everett must borrow funds from their bank at a nominal 10%, monthly compounding. To offset their overhead, Everett wants to charge its customers an EAR that is 7 % more than the bank is charging them. What Nominal rate should Everett charge its customers?
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