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cHAPTER 7 qUESTION 30 - 100(3,600 $.20 99 30-10 $7.20 365 =...

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CHAPTER 7 QUESTION 30 Discount 365 days Implicit interest rate = --------------------- ---------------- 100% Discounted Price Days Sooner (3,600 $.20 1%) 365 days Implicit interest rate = -----------------------------
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Unformatted text preview: ------------ 100% (3,600 $.20 99%) 30-10 $7.20 365 = -------------- --------- 100% $712.80 20 = 18.4% Yes, earn 7% on your money. Discount gives return of 18.4%...
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