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Simple Simon's Bakery purchases supplies on terms of 1/20, net 60. If Simple Simon's chooses to take the discount offered, it must obtain a bank

Simple Simon's Bakery purchases supplies on terms of 1/20, net 60. If Simple Simon's chooses to take the discount offered, it must obtain a bank loan to meet its short-term financing needs. A local bank has quoted Simple Simon's owner an interest rate of 9.4% APR with montly compounding on borrowed funds. Should Simple Simon's enter the loan agreement with the bank and begin taking the discount?
The cost of forging the discount is?
The EAR of the local bank loan is ?

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