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A store will give you a 450 discount on the cost of your

A store will give you a 4.50% discount on the cost of your purchase if you pay cash today. Otherwise, you will be billed the full price with payment due in 1 month. What is the implicit borrowing rate being paid by customers who choose to defer payment for the month?

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Finance Basics: A store will give you a 450 discount on the cost of your

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