Nominal rate-Interest on outstanding balances paid monthly

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Reference no: EM13850635

As a jewelry store manager, you want to offer credit sales to your customers, with interest on outstanding balances paid monthly. However, to finance your working capital, you must borrow funds from your bank at a nominal 6%, monthly compounding. For this service, you want to charge your customers an effective annual rate (EAR) that is 2% more than the bank is charging you. What nominal rate (APR) will you charge your customers? Use Excel.

Reference no: EM13850635

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