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Simmons Corp. can borrow from its bank at 1 7 percent to take a cash discount. The terms of the cash discount are 1 .

Simmons Corp. can borrow from its bank at 17 percent to take a cash discount. The terms of the cash discount are 1.510, net 45. Should the firm borrow the funds?
Your bank will lend you $4,000 for 45 days at a cost of $50 interest. What is your effective rate of interest?
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