The firm has an average collection period of 34 days. Current practice is to factor all receivables immediately at a discount rate of (1+0.1*x)%. Assume that default is extremely unlikely. What is the effective annual interest rate on this arrangement? Let x=1

A) 11.39 percent

B) 12.61 percent

C) 13.84 percent

D) 15.08 percent

E) 16.34 percent