Multiple Choice
Your firm factors its accounts receivables immediately at a 2% discount. The average collection period is 32 days. Assume that all accounts are collected in full. What is the effective annual interest rate on this arrangement?
A) 25.9%
B) 27.4%
C) 29.3%
D) 30.9%
E) 31.3%
Correct Answer:
Verified
Correct Answer:
Verified
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