A firm sells its 1190000 receivables to a factor for


A firm sells its $1,190,000 receivables to a factor for $1,130,500. The average collection period is 1 month. What is the effective annual rate on this arrangement? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Effective annual rate % 

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Financial Management: A firm sells its 1190000 receivables to a factor for
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