A firm sells its $1,180,000 receivables to a factor for $1,132,800. The average collection period is 1 month. What is the effective annual rate on this arrangement? (Round your intermediate calculations to 4 decimal places. Round your answer to 2 decimal places.)
Effective annual rate = _______________ %© BrainMass Inc. brainmass.com June 4, 2020, 2:29 am ad1c9bdddf
The solution describes the steps to calculate the effective annual rate in the given case.