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A firm offers terms of 1/10, net 30. What effective annual interest rate does the firm...

A firm offers terms of 1/10, net 30.

What effective annual interest rate does the firm earn when a customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.

What effective annual interest rate does the firm earn if the terms are changed to 2/10, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

c.

What effective annual interest rate does the firm earn if the terms are changed to 1/10, net 45, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

d.

What effective annual interest rate does the firm earn if the terms are changed to 1/14, net 30, and the customer does not take the discount? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)


   

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page or Answer (@) It then 1/ A from offers terms of No net 30. means if the customer pay the amount in 10 days can discount

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