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A firm sells its $1,080,000 receivables to a factor firm that specializes in collecting receivables for $1,000,000. The average collection period is 6 months. What

A firm sells its $1,080,000 receivables to a factor firm that specializes in collecting receivables for $1,000,000. The average collection period is 6 months. What is the effective annual rate on this arrangement? (Round your answer to 2 decimal places) Effective annual rate 95

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