On average, a firm has accounts receivable of $50,000 and total credit sales are $800,000....
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Finance
On average, a firm has accounts receivable of $50,000 and total credit sales are $800,000. Receivables are factored by discounting them at 1.5 percent. What effective interest rate is being charged for this asset-based borrowing?
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27.36 percent
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15.23 percent
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19.89 percent
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34.74 percent
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41.17 percent
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