A firm offers terms of 1/10, net 30.What effective annual interest rate does the firm...
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Accounting
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? WITHOUT doing any calculations, explain what will happen to this effect rate is:
a. The discount is changed to 2%
b. If the credit period is increased to 40 days
c. The discount period is increased to 14 days?
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