Prudoe Fuels Factors Its Accounts Receivable Immediately at a Discount

question 52

Multiple Choice

Prudoe Fuels factors its accounts receivable immediately at a discount of 1.65 percent.The average collection period is 43 days.Assume all accounts are collected in full.What is the effective annual interest rate on this arrangement? Assume a 365-day year.

• A)14.97%
• B)15.17 %
• C)16.09%
• D)16.67%
• E)18.51%

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Definitions:

Congenital Birth Defects

Conditions present at birth that can affect the structure and function of a baby, varying widely from mild to life-threatening.

Teratogen

Any agent or factor that causes malformation of an embryo.

Ligamentum Ovale

Ligamentum Ovale, often considered a mistake or a non-existing term in human anatomy, should likely refer to ligamentum teres or another specific ligament, as the term itself is not standard.

Ligamentum Arteriosum

Remains of the ductus arteriosus.