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What is the maximum discount rate should offer

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Reference no: EM132962824

Problem 1: Your company usually offers its customers 60 days to pay for purchases. To speed up cash collection, you consider offering them a discount if they pay within 15 days. Currently, you have a line of credit with your bank at 6%, compounded monthly. What is the maximum discount rate you should offer? Assume 360 days in a year. Enter your answer as a percentage to three decimal places.

Reference no: EM132962824

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