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A Merchant Receives an Invoice for $8000 with Terms 2/10,n/60

Question 118

Multiple Choice

A merchant receives an invoice for $8000 with terms 2/10,n/60.What is the highest rate of simple interest at which he can afford to borrow in order to take advantage of the discount?


A) 14.60%
B) 12.17%
C) 14.90%
D) 12.42%

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