What is mackenzie effective annual rate

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Assume that its trade credit terms are 2/10, net 60 and Mackenzie pays on day 35. Using a 365 day year, what is Mackenzie's Effective Annual Rate (EAR) cost of trade credit?

Please use this formula provided by the instructor, (1 + {N}/(100 -{N}))^(365/(365-{DP})) - 1

The answer to initial similar question was wrong. The correct answer is 1.090

Reference no: EM132596232

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