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A merchant is offered a 5.25% discount for immediate payment of a bill which is due in 96 days. What is largest simple interest rate at which he could afford to borrow in order to pay cash?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)

5th Edition

ISBN:9781305084766

Author:Saeed Moaveni

Publisher:Saeed Moaveni

Chapter20: Engineering Economics

Section: Chapter Questions

Problem 26P

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A merchant is offered a 5.25% discount for immediate payment of a bill which is due in 96 days. What is largest simple interest rate at which he could afford to borrow in order to pay cash?

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