Your Firm Factors Its Accounts Receivable Immediately at a 3

question 206

Multiple Choice

Your firm factors its accounts receivable immediately at a 3% discount. The average collection period is 41.95 days. Assume that all accounts are collected in full. What is the effective annual interest rate on this arrangement?

• A) 29.9%
• B) 30.3%
• C) 30.7%
• D) 30.9%
• E) 31.3%

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Definitions:

Stroke Volume

The volume of blood pumped by one ventricle during one contraction.

Heart Rate

The number of heart beats per minute, a measure of the heart's activity and an important indicator of health and fitness.

Systemic Circulation

Refers to the part of cardiovascular circulation which carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Pump Blood

The process of moving blood through the chambers of the heart and throughout the body's circulatory system to provide oxygen and nutrients to tissues and remove waste products.