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What is the effective annual rate of trade credit based on the following terms: Customers receive a 4% discount if they pay within 11 days
What is the effective annual rate of trade credit based on the following terms: Customers receive a 4% discount if they pay within 11 days of sale. If the discount is not taken, then the full amount is owed within 30 days of sale. Beyond 30 days the customer will be charged a rate of 1% per day on the outstanding balance.
a.
119.07 %
b.
112.87 %
c.
132.40 %
d.
106.92 %
e.
128.16 %
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