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:

Nutrition Counselors

Professionals who provide advice on diet and nutrition to help individuals achieve and maintain a healthy lifestyle.

Synchrony

Harmony of body language.

Affirmations

Positive statements aimed at encouraging self-empowerment and positive thinking.

Nutrition Counselors

Professionals specialized in providing advice and guidance on diet and nutrition to promote health and wellbeing.