Multiple Choice
Your firm factors its accounts receivable immediately at a 3% discount. The average collection period is 41.95 days. Assume that all accounts are collected in full. What is the effective annual interest rate on this arrangement?
A) 27.9%
B) 30.3%
C) 31.7%
D) 32.9%
E) 34.3%
Correct Answer:
Verified
Correct Answer:
Verified
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