A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period is 3 month. a. What is the effective annual interest rate on this arrangement? (Round your answer to...

A firm sells its accounts receivables to a factor at a 3.5% discount. The average collection period is 3 month.

a. What is the effective annual interest rate on this arrangement?(Round your answer to 2 decimal places.)

b. What is the implicit effective annual interest rate if the average collection period is 5 months?(Round your answer to 2 decimal places.)