Problem $18-7$ Factoring Receivables $[$LO$3]$

Your firm has an average collection period of $28$ days. Current practice is to factor all receivables immediately at a discount of $1\mathrm{.}8$ percent. Assume that default is extremely unlikely.

What is the effective cost of borrowing? $($Do not round intermediate calculations and enter your answer as a pecent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Effective cost of borrowing