What is effective annual interest rate on arrangement

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Reference no: EM131347117

The Delta Fish Hatchery factors its accounts receivables immediately at a discount rate of 1.8 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?

18.53 percent

17.20 percent

20.36 percent

21.78 percent

16.04 percent

Reference no: EM131347117

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