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Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthingtons commercial paper will be placed

Worthington, Inc. is planning to issue $7,500,000 in 120-day maturity notes carrying a rate of 11 percent per year. Worthingtons commercial paper will be placed at a cost of $35,000. What is the effective cost of credit to Worthington? What is the net amount to Worthington?

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