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XYZ Hospital makes a $350,000 purchase with a 4 percent in ten net 30 provision. What is the effective annual interest rate if XYZ Hospital

XYZ Hospital makes a $350,000 purchase with a 4 percent in ten net 30 provision. What is the effective annual interest rate if XYZ Hospital pays on dayr 11 and day 20?


Explain your results, identify what is trade credit, and why it is not ideal to use.

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