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Upstate Farms factors its accounts receivable immediately at a discount of 2.5 percent. The average collection period is 39 days. Assume all accounts are collected
Upstate Farms factors its accounts receivable immediately at a discount of 2.5 percent. The average collection period is 39 days. Assume all accounts are collected in full. What is the effective annual interest rate on this arrangement? Assume a 365-day year.
Multiple Choice
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29.97%
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26.74 %
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30.78%
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27.90%
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28.33%
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