A Firm Has an Average Collection Period of 37 Days

A firm has an average collection period of 37 days and factors all of its receivables immediately at a discount of .98 percent.Assume all accounts are collected in full.What is the firm's effective cost of borrowing?

A) 9.98 percent
B) 10.13 percent
C) 10.24 percent
D) 10.38 percent
E) 10.20 percent