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A Firm Sells Its $1,000,000 Receivables to a Factor for $960,000.Average

Question 23

Multiple Choice

A firm sells its $1,000,000 receivables to a factor for $960,000.Average collection period is one month.The effective annual rate is:

A) 27.43%
B) 48.00%
C) 60.10%
D) 63.21% Factor discount =

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