Determining the effective annual rate on arrangement
Problem:
A firm sells its $1,170,000 receivables to a factor for $1,134,900. The average collection period is 1 month.
Required:
Question: What is the effective annual rate on this arrangement?
Note: Show supporting computations in good form.
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Question: What is the effective annual rate on this arrangement? Note: Show supporting computations in good form.
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