Nominal Rate of Return

Anne Lockwood, manager of Oaks Mall Jewelry, wants to sell on credit, giving customers 3 months to pay. However, Anne will have to borrow from her bank to carry the accounts receivable. The bank will charge a nominal rate of 6% and will compound monthly. Anne wants to quote a nominal rate to her customers (all of whom are expected to pay on time) that will exactly offset her financing costs. What nominal annual rate should she quote to her credit customers? Do not round intermediate calculations. Round your answer to two decimal places.

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