Prudoe Fuels factors its accounts receivable immediately at a 1.5 percent discount.The average collection period is 32 days.Assume all accounts are collected in full.What is the effective annual interest rate on this arrangement?
A) 19.97%
B) 18.81%
C) 26.09%
D) 26.67%
E) 18.51%
Correct Answer:
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