Tenny Textiles factors its accounts receivable immediately at a discount of 2.5 percent. The average collection period
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Question:
Tenny Textiles factors its accounts receivable immediately at a discount of 2.5 percent. The average collection period is 39 days. Assume all accounts are collected in full. What is the effective annual interest rate on this arrangement? Assume a 365-day year.
Multiple Choice
- 30.78%
- 29.97%
- 27.90%
- 28.33%
- 26.74 %
Expert Answer:
Related Book For 
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
