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17 November, 12:41

Neveready Flashlights Inc. needs $302,000 to take a cash discount of 2/19, net 71. A banker will loan the money for 52 days at an interest cost of $11,800. a. What is the effective rate on the bank loan

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  1. 17 November, 12:51
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    The effective rate on the bank loan is 27%

    Explanation:

    The effective rate of Interest

    = ($11,800/$302,000) * (360Days/52days)

    = 0.039*6.92

    =27%
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