Q1:

TD purchases accounts receivable from a valued client in the amount of $41250 at a 3.3% discount. The average collection period is 3 months. What is the effective rate of factoring?

a.8.22 %

b.6.94 %

c.5.91 %

d.14.37 %

e.8.39 %

Q2: On a discount basis, the cost of a bank loan of $1.8 million for 9 months at a quoted annual rate of 10.10% is

a.11.07%

b.8.52%

c.11.23%

d.10.67%

e.16.61%