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At what implied effective annual interest rate loaning

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Question - As manager of Fly-by-Night Airlines, you decide to allow customers 90 days to pay their bills. To encourage early payment, though, you allow them to reduce their bills by 1.7% if they pay within the first 38 days. At what implied effective annual interest rate are you loaning money to your customers? What if you extend the discount to 68 days and allow full payment up to 180 days?

Reference no: EM133165650

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