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What is the effective annual interest rate on arrangement

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Reference no: EM132490686

Question 1: Your firm is offered credit terms of 3.90, net 55. What is the effective annual interest rate on this arrangement? Assume 365 days in each year

Option 1: 27.38%

Option 2: 37.39%

Option 3: 34.06%

Option 4: 24.64%

Option 5: 26.01%

Reference no: EM132490686

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