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Crane, Inc., sells $314,000 of its accounts receivable to factors at a 2 percent discount. The firms average collection period is 90 days. a. What
Crane, Inc., sells $314,000 of its accounts receivable to factors at a 2 percent discount. The firms average collection period is 90 days.
a. What is the simple annual interest cost of the loan? (Do not round intermediate calculations. Round answer to 1 decimal place, e.g. 15.1%.)
b. What is the effective annual interest cost of the loan? (Round answer to 2 decimal places, e.g. 15.25%.)
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