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Thankyou for the clarification!

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Thank you. Will do!

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Thank you for taking the time to help me with my query.

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Now let’s take the same scenario, and assume that the overdraft rate is 40%.
We are asked to decide whether to take the discount or not.

Rationally, one should use the EAR rather than the Simple Annual Rate for the comparison, right?
Or, since it is not explicitly mentioned to apply the EAR, one should opt for the Simple Annual Rate instead?

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