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A firm offers terms of 110 net 30 Requirement 1 What effective annual interest rate does the firm earn when a customer does not take the discount Do not round intermediate calculations

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

What effective annual interest rate does the firm earn when a customer does not take the discount? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
  Effective annual interest rate %
 
Requirement 2:
 

What effective annual interest rate does the firm earn if the discount is changed to 2 percent? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
  Effective annual interest rate %
 
Requirement 3:

What effective annual interest rate does the firm earn if the credit period is increased to 40 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
  Effective annual interest rate %
 
Requirement 4:

What effective annual interest rate does the firm earn if the discount period is increased to 20 days? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
  Effective annual interest rate %
 

Apr 06 2020 View more View Less

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