FINANCE
5-28 (Nominal interest rate and extending credit) As a jewelry store manager, you want to offer credit with interest on outstanding balances paid monthly. To carry receivables, you must borrow funds from your bank account at a nominal 6% monthly compounding. To offset your overhead, you want to charge your customers an EAR (or EFF%) that is 2% more than the bank is charging you. What APR rate should you charge your customers?
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