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Hempstead Electric buys its wiring materials in bulk directly from Hamilton Wire and Cable Company. Hamilton offers credit terms that involve a cash discount of

Hempstead Electric buys its wiring materials in bulk directly from Hamilton Wire and Cable Company. Hamilton offers credit terms that involve a cash discount of 3 percent if payment is received in 30 days. Otherwise, the full amount is due in 90 days. What is the approximate cost of credit to Hempstead if it exceeds 30 days and passes up the cash discount?

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