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For the year just ended, a firm had average accounts receivable of $90,000 and total credit sales of $1,447,192. Throughout the year, a factor purchased
For the year just ended, a firm had average accounts receivable of $90,000 and total credit sales of $1,447,192. Throughout the year, a factor purchased accounts receivable from the firm at a 1% discount. What was the firms effective interest rate paid on its receivables financing? a. 17.16% b. 2.04% c. 84.79% d. 16.33% e. 17.54%
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