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Your firm is offered credit terms of 2/20, net 60. What is the effective annual interest rate on this arrangement? Assume 365 days in each

Your firm is offered credit terms of 2/20, net 60. What is the effective annual interest rate on this arrangement? Assume 365 days in each year. (Show your work)

Multiple choice

a. 21.79%

b. 16.43%

c. 18.25%

d. 20.24%

e. 17.34%

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