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Posted on Jul 30, 2024

A firm sell all its $ 1 2 0 of credit sales to a factoring company that pays 9 8 for each dollar of sales.

A firm sell all its $

120

of credit sales to a factoring company that pays

98

for each dollar of sales. The firm

s customers pay in

60

days. What is the effective interest rate the firm is paying?

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