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A firm sells its accounts receivables to a factor at a 3.2% discount. The average collection period is 3 month. a. What is the effective
A firm sells its accounts receivables to a factor at a 3.2% discount. The average collection period is 3 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 4 months? (Round your answer to 2 decimal places.) Effective annual rate %
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