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Death By Chocolate sells its $4,000,000 accounts receivable to a bank for much needed cash at a 4% discount. The average collection period is two
Death By Chocolate sells its $4,000,000 accounts receivable to a bank for much needed cash at a 4% discount. The average collection period is two months. What is the effective annual rate that the bank is charging Death by Chocolate for the required cash?
a. 13.03%
b. 63.22%
c. 27.76%
d. 20.05%
e. 3.09%
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