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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Accounting Basics: Determining the effective annual rate on arrangement
Reference No:- TGS0889475

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