Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 firms customers pay in 60 days. What is the effective interest rate the firm is paying?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions

Question

=+c) How many factors are involved?

Answered: 1 week ago