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A firm sells its accounts receivables to a factor at a 1.6% discount. The average collection period is 2 month. a. What is the effective

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A firm sells its accounts receivables to a factor at a 1.6% discount. The average collection period is 2 month. a. What is the effective annual interest rate on this arrangement? (Round your answer to 2 decimal places.) Effective annual rate % b. What is the implicit effective annual interest rate if the average collection period is 2.5 months? (Round your answer to 2 decimal places.) Effective annual rate %

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