A Firm Sells Its Accounts Receivable to a Factor at a 2

question 21

Multiple Choice

A firm sells its accounts receivable to a factor at a 2% discount.If the average collection period is 1 month, determine the effective annual rate of interest on the factoring.

• A)27.43%
• B)28.53%
• C)29.63%
• D)30.73%

---

Definitions:

Triplet

A pattern seen in NMR spectroscopy where a signal is split into three distinct peaks, often indicative of specific neighboring hydrogen atoms.

NMR Data

Information obtained from nuclear magnetic resonance spectroscopy that provides insights into the molecular structure, dynamics, reaction state, and chemical environment of molecules.

Triplet

In chemistry and physics, refers to a quantum state with three possible orientations in a magnetic or spin system.

Broad Singlet

A term in nuclear magnetic resonance (NMR) spectroscopy describing a signal that appears as a single peak but with a broadened width due to various intermolecular interactions.