Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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merchant receives an invoice for $8000 with terms 2/10, n/50.
a) What is the maximum interest rate that the merchant could borrow money at to take advantage of the discount?
b) If the bank offers a loan for 15% interest, should he accept it, and if so, what will be his savings?
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