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A firm offers terms of 215 net 50 Enter your answers as directed but do not round intermediate calculations Requirement 1 What effective annual interest rate does the firm earn when a customer

A firm offers terms of 2/15, net 50. (Enter your answers as directed, but do not round intermediate calculations.)
 
Requirement 1:

What effective annual interest rate does the firm earn when a customer does not take the discount?(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 3 percent? (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 70 days? (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?(Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

 
  Effective annual interest rate %
 

May 21 2020 View more View Less

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