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A well-known financial writer argues that he can earn an extremely high return buying wine by...

A well-known financial writer argues that he can earn an extremely high return buying wine by the case. Specifically, he assumes that he will consume one $13 bottle of fine Bordeaux per week for the next 12 weeks. He can either pay $13 per week or buy a case of 12 bottles today. If he buys the case, he receives a discount of 9 percent. Assume he buys the wine and consumes the first bottle today.

What is the EAR of purchasing wine by the case with this discount? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy E AutoSum Wrap Text General в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard KB27 JZ Font Alignment Number Styles Cells Edting KA KB KC KD KE KF KG KH KI KJ KL KM KN 18 19 20 21 wine case cost of case-9% less than the cost of 12 individual bottles cost of case (12 BOTTLES) (S13) (1-0.09141.96 23 24 25 26 27 28 29 30 31 32 now this is a case of annuity due PV 141.96 12 13 1.7632% PMT RATE EXCEL RATE(KF25,-KF26,KF24,,1) NOW WE HAVE TO CALCULATE EAR RATE WEEKS EAR (1 +1.7632%)A52 -1- 1.7632% 52 1.48153 148.15% 34 35 36 1 ANSWER EAR- 148.15% CALCULATOR , LOAN OPTIONS | CAP STRU VALUE LOCK BOXDILUTION DOLLAR COST AVGMORTGAGE EXPO Sheeti Sheet2She rences: x261 13:37 31-01-2019

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